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September 27, 2021

Some of the conclusions drawn after the draft rules were issued

Brazil to grant only 30 sports betting licenses; operations won’t begin until 2021

Brazil to grant only 30 sports betting licenses; operations won’t begin until 2021
"We are talking about the second half of 2021, and that is if there are no complications in the middle," Magnho José said.
Brazil | 02/21/2020

After government officials announced the release of draft rules for the implementation of sports betting, Magnho José, an expert and president of the Brazilian Institute for Legal Gaming said the process will last this whole year, so “operations won’t begin until 2021.”

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he Secretary of Public Policy, Planning, Energy and Lottery (SECAP in Portuguese), part of the Ministry of Economy, published Wednesday a preliminary version of the guidelines for the implementation of sports wagering in Brazil. 

The text contains a detailed description of the licensing process and a form to send comments and suggestions, as part of a public consultation aimed at gathering information to improve the final rules. Those comments can be send up to May 6, 2020.

If SECAP adopts suggestions that result in changes to the preliminary guidelines, those amendments will be reviewed once more, by the National Treasury Attorney's Office (PGFN in Portuguese).

"If that is the case, the final rules would be issued around May,” Magnho José explained. “The licensing process could begin around June 20 and depending on the scheme chosen, other 45 days could be needed for applicants to submit a bid guarantee, a written economic proposal, and documents attesting to their qualifications. That stage would probably end around August 20."

"The following stages could last at least three months, so more or less until November," said the president of the Brazilian Institute for Legal Gaming (IJL in Portuguese). "If we add up another six months until the official rules become effective, we are talking about the second half of 2021, and that is, if there are no complications in the middle."

The specialist who also serves as the editor of the news publication BNL Magocom, discussed some of the ‘doubts’ he has about the “ideal number of 30 licenses”. He spoke with some sports betting industry representatives who share his concerns: "What is an “ideal number of 30 licenses”? Does it refer to a maximum, a minimum or a preferred number? On what grounds has that specific number been defined? How can the price of an “ideal number of 30 licenses” be determined? Is SECAP going to hire BNDES -Brazil’s government-owned development bank- to determine the price of the licenses, as the agency did with, for example, Lotex? All of these questions are yet to be answered by the authorities responsible for a process that it is likely to take at least more than a year."

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