Sports betting regulations for Brazil will be ready by before the summer. However, the market is not in any way prepared to take-off until the following year.
In an interview that was published Sunday, the undersecretary of prizes and sweepstakes in the Economic Ministry of SECAP (Secretariat of Evaluation, Planning, Energy and Lottery) Waldir Eustáquio Marques Jr., said the government would have final land-based and online sports gambling regulations ready for release on or before July.
However, giving out licenses will take additional time, and the gambling market is not expected to take off until the start of 2022. This will be more than 3 years since Brazil sanctioned its gambling legislation. According to Marques, the delays were because of the desire of the government to avoid going in loops.
Marques disclosed that the government was very close to enacting its regulations in 2020 until SECAP changed its mind concerning the number of licenses it plans to give out. Also, Marques said the initial plan to permit each organization that met the requirements for licensing had “some points that could be harmful. So we had to put the brakes on, review the model, in order to be able to proceed safely.”
The nations are very much aware of gambling licensees’ expressed interest in getting access to a market of 213 million people. According to reports, the federal government is of the opinion that it can bring about R$4 billion – R$10 billion (US $730 million -$1.8 billion) from fees levied on the operators chosen to work in the betting market of Brazil. They will also gain lots of money from the sum gotten from taxing gambling (at 3 percent of online profit under the latest law).
In the meantime, states in Brazil wasted no time taking advantage of the latest court ruling that cleared the path for lottery operations within states. Rio de Janeiro will carry out a public hearing to be held on the 22nd of January this year. The hearing will “to guide the procedures to continue the exploration of instant lotteries and number games” within the state’s borders.”
Maranhão, on the other hand, approved a law last year that revived its Maranhão State Lottery which is controlled by Maranhão Parcerias S/A. This is a mixed-capital organization connected to the State Secretariat of Government.
The lottery is now permitted to discover all types of online lottery and land-based options, as well as numeric draws, instant-win tickets and sports betting, also known as fixed odds betting.
Fixed-odds betting is a cause of worry for the federal government that it will not have the capacity to raise billions from sports gambling licenses. The apex Federal Court ruling already ended a juicy federal contract given to IGT-Scientific Games group as they once believed they had a monopoly on lottery operations in Brazil.
Consequently, SECAP plans to release new rules before January ends to guide the making of state-level lotteries.