Brazil on Track to Legalize Sports Betting by July
Brazil is on its way to legalizing sports betting in the country with legislators expecting a final regulatory framework to arrive in the summer.
Sports Betting Legalization on Track for Summer
Sports betting legalization is underway in Brazil with the undersecretary of SECAP, the Economic Ministry’s Secretariat of Evaluation, Planning, Energy and Lottery, Waldir Eustáquio Marques Jr., expecting regulation to kick in July.
Marques Jr. spoke about “sports betting peculiarities” that made the industry different from traditional lotteries, explaining that the sports wagering infrastructure required much higher technical specifications to work.
He commented that legislators had to figure out a lot of things related to the integrity of sports, prevention of money laundering and match-fixing as well as preying on vulnerable consumers. Tasked regulators and officials have been looking into these issues and taken part in events and training seminars dedicated to tackling and regulating them properly.
The key, Marques Jr. said, was to take a step forward without having to take a step back. Right now, the legislator commented, the government was very close to putting together a regulatory framework that would serve everyone.
One outstanding issue was the number of licenses allowed in the country with legislators still unclear on how many stakeholders they should allow. Brazil is building its sports betting industry in a model similar to the United States’ with technological providers and sportsbook operators headed into the country.
Stakeholders Begin an Early Entry
While very close, Marques Jr. cautioned that lawmakers were still discussing some issues that had the potential to be “detrimental,” necessitating further engagement and review. Licensing fees, though, are expected to generate up to $1.8 billion and no less than $730 million at first, making the legalization of the industry an important talking point for lawmakers in the country.
Meanwhile, the Supreme Court is expected to make a decision on the legality of sports betting in April 2021. Some stakeholders have begun opening up for business in the country, including Compare.bet which has set-up shop ahead of the official launch.
BetWinner has already signed a 4-month brand exposure deal with ESPN in Brazil, as the stakeholder is trying to boost awareness for its product.
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