Inching a step closer to expanding gaming industry, the government of Brazil has finally released draft rules for the sports betting segment that is expected to find a lot of support from operators.
Even as the subject of casinos remains controversial, some other forms of gaming entertainment have started finding support. The segment of sports betting is on the right track to eventually evolve as a big business in Brazil. To regulate the potentially lucrative market, the Secretariat of Evaluation, Planning, Energy & Lottery (SECAP, for its Portuguese acronym) has laid out the rules.
If everything goes as planned and no one seeks any modifications or alterations, the draft rules will be final when they get President Jair Bolsonaro’s signature. Currently, that is expected to happen within a week.
Under the new regulations, operators will have to apply for a gaming license to offer sports betting services in the country. For the time being, there is no limit to the number of licenses. It means that all the operators that want to gain a license to capitalize on the country’s potentially lucrative sports betting activity are being welcomed.
Gaming companies that are already operating in the Latin American country will get six months to meet the provisions of the approved sports betting rules after the publication of decree. If they fail to meet the provisions, they will not be able to qualify for a gaming license. According to data released by H2 Gambling Capital, there are nearly five hundred foreign operators.
The sports betting licenses will be valid for a period of five years, and each operator will have to make a payment of R$22.2 million (US$4.47 million) to obtain one. With the market’s worth estimated to be more than $1.4 billion, the expense will be reasonable for many operators.
A new regulatory body will be authorized by the Ministry of Economy to supervise sports betting operators in the country. The ministry has already approved a new Secretariat for Special Affairs, Lottery & Export Processing Zones (SALEPZ) and hired a new leader to take over as the Undersecretariat of Prizes & Draws.
Within 30 days, the regulatory body will review the documentation and notify the interested parties to submit their final documents. Within next 60 days, it will have to complete the process of examination of the applications.
President Bolsonaro is expected to approve the new regulations by 10th of May, after which they could take effect within three months, setting up the market just in time for the NFL season in the fall.