Brazil Sets Out Licensing Plans For Sports Betting

0
39

Brazil’s Economy Ministry is finalising a draft regulatory decree for online and land-based sports betting that would see that Brazil was set no limit on the number of licenses that could be issued.

Neil Montgomery, managing partner at Montgomery & Associados, informed SBCthat the rules will be open for government debate later this month.

Under the proposed regulations, operators will be required to pay R$3 m (£ 600,000) a one-time license fee lasting a period of nine years, with businesses paying an annual turnover tax rate of 1%.

Monthly licensing charges will vary based on the nature of operation. Land-based operators will pay R$20,000 per month (£ 4,000); online operators will pay R$30,000 per month (£ 6,000) and omni-channel operators will pay R$45,000 per month (£ 9,000).

The regime also stipulates that operators must maintain a R$6 million (£ 1,200,000) economic reserve as a customer payment guarantee.

“The Ministry of Economy received more than 1,800 suggestions, both from Brazilian and foreign entities and individuals, on how to regulate sports betting. There was an overwhelming response to the public consultation opened in July,” commented Montgomery.

“We consider this to be the most adequate licensing regime and regulatory framework as it gives flexibility and allows various companies to operate in the market,” said Alexandre Manoel Angelo da Silva, from the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP), which comes under the Ministry of Economy.

The approval of MP-846, which is a bill to pave the way for sports betting to go live in the country, was signed by the office of outgoing President Michel Temer this year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here