How soon will Brazil legalize sports betting?
Sports betting has been a hot topic in Brazil for the last couple of years, with Brazil’s President Bolsonaro a staunch proponent. However, after many delays in legislation, the country’s gaming industry and global interests wonder, when will all of these talks come to fruition? There are some positive indications that sports betting will come to Brazil soon.
SECAP has indicated that it hopes to finalize Brazil’s sports betting law before this year’s World Cup in Qatar. ©Fauzan Saari/Unsplash
Hiccups in Brazil’s Sports Betting Plans
Those who have waited for announcements regarding Brazil’s plan to legalize sports betting have had a hard time tracking when the law would be finalized. That is because despite support from Brazil’s president and much of the government, several snags have prevented the decree from being finalized. The COVID-19 pandemic also threw a wrench in plans as it posed a more pressing threat to health and safety in the country, as well as adversely affecting the economy and gaming industry as a whole.
In December 2021, proponents believed the time might have finally arrived: Brazil’s governmental body in charge of regulating sports betting (when it does become final), SECAP, sent a delegation to a prominent sports betting conference. It was expected that concrete plans for rolling out sports betting in Brazil would be shared.
Instead, SECAP’s delegates merely stated that they would like to bring in legalized sports betting in time for the FIFA World Cup, which will take place at the end of the year in Qatar. It felt to some like another delay, with no clear idea of when the Presidential Decree for Law No. 13,756/2018 would actually come into effect for Brazilians.
Positive Signs for Sportsbooks in Brazil
Despite the anticlimactic result of December’s announcements, there are many reasons to stay positive about potential legalization in the near future. For one, Law No. 13,756/2018 stipulates a deadline for the roll out of sports betting. The deadline is at the end of 2022. It is unclear what the consequences would be if that deadline was passed, but it seems the Brazilian government will not let it get that far.
Another positive sign for the near regulation is that a major tax-related issue regarding sports betting has been resolved. Last year, it was decided that tax would be based on gross gaming revenue (GGR) rather than total turnover, as was initially planned. Rates were also determined: 3% on online turnover and double that for brick-and-mortar establishments.
Next, Sérgio Ricardo Calderini Rosa recently took over the role of Secretary for SECAP from former Secretary Guimarães e Souza. Calderini Rosa has a liberal track record and seems to be on the side of legalizing sports betting as soon as possible.
The sports betting and gaming world are also looking forward to ICE London, a major showcase for the industry. The date of the showcase was recently moved from February 2022 to April, which may indicate that SECAP will have a chance to finalize its policy in time to share it live at the event. There is also added incentive for SECAP to bring out the policy now, well in advance of the next presidential election in October 2022.
How does Brazil’s gambling legalization affect sports betting?
Those with an eye on gaming in Brazil are already well aware that the country has been working towards a comprehensive gambling bill that will address casino, lottery, and other games. This bill for Law No. 442/1991 has now been approved by Brazil’s House of Deputies, but did not include any language on sports betting.
It could go two ways: legislators might indeed include language that would affect sports betting (and would likely create a more stringent process for sportsbooks looking to get licenses), or it may be handled separately by SECAP. It is hoped that SECAP will take the reins and release their sports betting bill first, so that it is not derailed by any future decisions regarding Brazil’s gaming industry as a whole.
