The Brazilian Ministry of the Economy’s Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP) has launched a second consultation to inspect the rules and regulations of its soon-to-be-introduced online and land-based sports betting services.
The SECAP published a draft of the decree that involved fixed-odds sports betting for more commentaries and remarks. This would prove to be the last chance for the betting industry to propose any amendments.
In the draft decree that was published, the economy ministry stated how the government of Brazil would oversee the market. The ministry itself or a successor body would regulate the processing of licensing applications as well as implement sports betting regulations.
The new consultation on the draft decree would be available but just for a shorter period than the preceding consultation, which happened from July to August. The deadline for additional comments to reach the ministry is on September 27.
Land-based operators would see a 0.15% turnover that will be apportioned to social security programs. An extra 0.1% would go towards public education. Another 0.1% would go to the National Public Security Force. Football clubs would get the remaining 0.65%, which would then be used for the branding and promotion of sports betting.
The sports betting market would be made available to players aged 18 and up. All forms would be account-based to guarantee that those getting involved are old enough to do so.
The published decree also explains that a licensee must fulfill specific criteria to avail of its services. Applicants must not have a history of misconduct in criminal, administrative, civil, or financial matters.
Those interested in applying must also have financial reserves at a minimum of R$6 ($1.5m). The operator must state they have never offered services in any other regulated market in an illegal manner.
Executives of the applicant must also go through a background check. Any individual convicted of a crime would not be able to work within the firm until eight years have passed since their conviction.
Licensees must also comply with stringent regulations regarding advertising sports betting. Advertisements must hold warnings about the dangers of gambling while betting slips must also have warnings and be unmistakably displayed on the websites of the license holder. Ads cannot include fake or misleading claims, nor can they feature minors.
On top of fulfilling advertising requirements, operators must also work to prevent money laundering and terrorism financing. Processes must include customer checks as well as staff training programs and sales agent testing.
