Brazil turns down betting incentives amidst ongoing regulatory decision-making process
Brazil's new gambling regulations, launched two months ago, aim to establish a profitable yet safe betting market. The regulations, overseen by the Secretariat of Prizes and Betting (SPA), are expected to be finalized by July this year.
Analysts predict that Brazil's wagering sector could generate billions of dollars in revenue. This potential revenue has caught the attention of leading global operators, who are carefully following every regulatory move.
The new regulations come with specific provisions to ensure a regulated betting market. Operators are forbidden from providing any form of advantage or bonus, even for promotion or advertising. This prohibition of incentives is due to concerns about the integrity of the market and potential spike in problem gambling.
Under the new framework, operators must only take money from registered customers. Winnings should be paid out within 120 minutes, counted from the conclusion of a sporting event or game.
Brazil plans to mirror ad restrictions in other markets and ban celebrities from appearing in gambling ads. To shield local consumers from harm and protect the integrity of the sector, the new regulations will prohibit certain payment methods, including cryptocurrencies, cash, and credit cards. Instead, operators will be allowed to use certain electronic transfers.
The regulatory framework also includes provisions to closely audit financial flows. Brazil's regulatory authorities are implementing a digital betting management system (SIGAP) to monitor licensed operators and ensure compliance.
Concerns about the societal impact of gambling, addiction, and related public health service burdens are also being addressed. While specific advertising restrictions are not detailed, future discussions could involve controls or safeguards to mitigate these impacts.
Increased taxation on online betting operators has been mandated, with a rise from 12% to 18% of gross gambling revenue. Part of the revenue is earmarked to support causes such as deaf athletes.
Operators are required to obtain federal licenses and comply with post-qualification steps like platform certification. Several operators, including DigiPlus and Sportingtech, have already complied with these requirements.
A recent Vixio report suggests that the legalization of online casino gaming in Brazil could generate up to $5 billion in revenue. With these promising prospects, several global operators are setting their sights on Brazil. However, they will need to adapt to the strict and responsible regulatory environment that Brazil is establishing.
Operators in Brazil's casino-and-gambling sector are forbidden from offering any form of advantage or bonus, as per the new regulations, to maintain market integrity and control problem gambling. The potential revenue generated from legal casino gaming in Brazil, estimated to reach up to $5 billion, has attracted global operators, who are preparing to adapt to the country's strict and responsible regulatory environment.