Brazil outlines four-month regulatory framework plan
Ministry of Finance aims to have official regulations confirmed by end of July ahead of market’s launch later this year
The Brazilian Ministry of Finance has laid out a new agenda in which the government will aim to officially confirm the rules and regulations around online sports betting and igaming in the country.
The agenda, which is broken up into four phases, is due to conclude by the end of July, with the purpose of providing a holistic and comprehensive framework ahead of regulation of the market later this year.
The plan was laid out in Brazil’s Official Gazette of the Union, with the recently formed Prize and Betting Secretariat having oversight of the process.
The Secretariat was unveiled in February and will consist of 38 staff to regulate the market.
As part of the first tranche, which is due to complete by the end of April, regulatory action that has been deemed a priority will be examined.
This includes ordinance on the qualification of certification laboratories, payment methods, betting systems and how operators will be authorised to operate in Brazil.
The second tranche, due to finish by the end of May, is centred on providing legal certainty and efficiencies.
Under this umbrella, the Ministry of Finance will delve into money laundering and other financial crime ordinance, as well as confirming the rights and legal obligations for licensed firms.
The third phase will explore creating an attractive regulatory framework, looking at topics including the ruling on technical requirements for games, rules on supervising operators and determining a sanctions structure. This tranche is due to finish by the end of June.
Finally, phase four will complete by the end of July and will take in responsible gambling guidelines and social allocations.
The confirmation of a plan from the Ministry of Finance comes four months after President Luiz Inácio Lula da Silva approved regulated online sports betting and igaming in the South American country back in December.
Operators will be subject to a 12% GGR tax rate after paying BRL30m (£187.5m) for a five-year licence, which will allow the holder to launch three brands in the market.
Earlier this month, local media reports suggested the government was exploring the possibility of requiring licensed operators to use ‘.bet’ embedded in their URLs.