The Sports Betting in Brazil
The significant new in Brazil was the legalization, on December 12, 2018, of the Sports Betting modality, granted under the law 13.756/2018, whose activity already invoice more than 1,5 billions of reals from Brazilians in the countries that allow operating these web business.
The legal gaming market in Brazil is composed of those that are regulated via the Union, by the states that have a lottery created and by the ones understood as "mind gaming". Nowadays, the paradigm contained in the legislation edited by the Union, which maintains the legal expertise and exclusive on raffles, is the legal bounder to the creation of gambling to be explored in the national territory.
The modalities explored via lotteries can be divided into four classes: i) Draw-based; ii) Sports Games; iii) Instant Games; iv) Sports Betting.
The enormous potential of the Brazilian sports betting market, fanatical football culture and a population of 200 million people, moves around 2 billion reals per year, are attracting eyes to Brazil. According to a study carried out by the FGV, the Getúlio Vargas Foundation it’s a 2,5 bi of dollars market to be explored. The adoption of this law is, therefore, a significant development for the industry globally.
E-sport is young, global, digital and diversified, it reaches millennials, focused group to the big global brands in the world of the game, testifying that at present, Brazil is the third largest e-Sports audience in the world.
According to Law, arising from Provisional Measure 846/2018 and promulgated by President Michel Temer (MDB) on the last day 14, the Ministry of Finance has two years, extendable for another two, to regulate the operating rules of sports betting, which will cover football games, tennis, volleyball, among others.
The sites can sponsor national teams and the stakes will be by fixed quotas, at same hand the player will know how much can win if hits the competition's result.
Whereas to explore legal gambling in Brazil there will be demands and rigour in the business conditions and investors who come forward to obtain a license, it is riskier to wait sitting than moving to take the opening of the largest untapped market of games in the world, Brazil.
With the government seeking new sources of revenue to cover its budget deficit, there have been several initiatives to liberalize different types of game. The presidential approval of this law should open a very promising betting market, which may include physical betting and online gambling.
The law determines that it will be up to the Public Power to regulate the matter within two years, a term that may be extended for an equal period. However, it will be heard that regulation will occur much more quickly, especially in view of the need for the Federal Government to raise new sources of resources. The certainty that one has, at the moment, is that once regulated the activity and demonstrated the rules for the competition for licenses and/or authorizations to operate, this will then be a legal area to be operated in Brazil. While the issue is not regulated there is no way to say with certainty what the legal situation regarding the exploitation of sports betting.
However, prevails the understanding that the activity will only be legal and operable after the regulation of the subject and determination of the bidding rules for those who want to operate fixed quota bets in Brazil, which should occur still in 2019.