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Meet our consultants at the Balkan Entertainment and Gaming Expo taking place on the 20-21 November at the Inter Expo Centre in Sofia.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

Brazil has the fifth largest population, and the ninth largest economy in the world, the country could easily be a significant market for sports betting. With a population approaching almost 220 million, Brazil’s online sports betting market could be worth over $1.15bn, as Senator Flexa Ribeiro pointed out. Although Brazilian online sports betting has been largely unregulated until now, online sportsbooks were legal. Attempts to ban online gambling prove how prevalent it is. The government in Brazil tried to ban online gambling payments way back in 2006, 2008, and most recently in 2010. Thus far, all attempts have failed. Furthermore, the Senate attempted to ban online sportsbooks in 2011. That measure also failed to gain sufficient support. The Brazilian Senate passed a bill in 2015 that proposed to regulate and tax online sportsbooks, and additionally creating two new lotteries.

Legal Grey Area

Former Brazilian President Dilma Rousseff vetoed the bill in 2015, and so far, online sports betting operates in a legal grey area. Although Brazilians love betting on sports events, there are not that many legitimate online sportsbooks in Brazil. Until now, Brazilian gamblers have accessed international online bookmakers that accept real money players from Brazil.

Regulations for online sports betting in Brazil

Online sportsbooks that cater to Brazilian bettors need to include South American and European football betting options. A legitimate Brazilian sportsbook provides betting on Jiu-Jitsu in mixed martial arts. Several Brazilian fighters participate in the MMA; therefore, sportsbooks will need to offer bet options on the UFC, as well as, the other significant MMA associations. Other popular sports in Brazil include South American and NBA basketball, along with horseracing. Sportsbooks will need to have all online sports bets in the Portuguese language. Sites should also support online transactions in Brazilian Reais.

New sports betting legislation

The Brazilian Congress finally approved the Provisional Measure (MP) 846. It was subsequently signed into Law 13,756/2018 in December 2018 by the President. The law authorises online sports betting and land-based betting, however, legislation is yet to receive specific enforcement regulations enabling licenses to be granted to private betting operators. The Brazilian Ministry of Finance will be the new regulator for legal sports betting on the country. It is estimated that another two years are needed to finalise all the specific regulations.

Since the Law 13,756/2018 was approved and sanctioned, the Brazilian sports betting market experienced a massive shift. There has been significant growth in advertising revenue for local soccer clubs. Increases have been noted in the number of soccer tournaments and leagues, sports ambassadors, and sponsorships. New land-based and online operations have sprung up as the projected increase in the betting volume takes effect. The new legislation sets out fixed quota betting for retail and online operators. Online operators will be obliged to pay back at least 89% of bets handled back to the customer.

Additionally, operators will have to pay a tax rate of 8% on their turnover. Out of these 8%, 3% is to be channelled into education, social security, along with law enforcement. Unexpectedly, approval of the bill was passed relatively quickly for the country, notorious for its cumbersome political system. The new political climate seems to be much friendlier towards gambling. The Senate Bill PLS 186/2014, passed this year, legalising online sports betting, online casino games and bingo was defeated by 13-2 in a senate vote.

Final Public Consultation

Potential sports betting operators in Brazil are being invited to a final public consultation. It is a chance to influence and shape the new gambling rules before they are carved in stone. The Ministry of the Economy in Brazil announced the consultation regarding proposed plans, and the regulation of online and offline sports betting. Interested parties had up until the end of September to submit their proposals and counter-reactions to the new draft decree. The document was initially launched in July, and attracted 1,850 submissions, with a third of them from industry types. The draft decree was the result of the ministry’s interpretation of submissions. However, there were apparently still several areas of uncertainty.

Summary

Moreover, the decree confirms both online and land operators will have to pay 1% tax on betting turnover. According to government estimates, that will work out at about 6% of the gross revenue from gambling. The draft decree does not contain any other information regarding fees or taxes; however, the government previously confirmed licensees have to pay an upfront fee of US$735, and monthly fees of BRL30k for online operators, BRL20k for land-based, and BRL45k for both at once. Applicants for betting licenses need to provide proof of financial reserves of $1.5m to ensure bettors are paid if the bookmaker encounters financial difficulties. All advertising for betting has to be accompanied by a responsible gambling messaging, and the online operators’ home pages need to be visible. Operators will not be permitted to make fun of the cultural beliefs or traditions in Brazil, or mock people who disapprove of gambling. Operators who are flouting the rules may face penalties amounting to 100% of their gross revenue. Repeat offenders are charged double the original penalty. Betting legislation was signed into law last year, allowing two years for the government to make the final betting regulations. The plan is to prepare and finalise the rules by December 2019, ahead of a betting market launch in June 2020. Operators are already salivating at the prospect of offering sports betting to Brazil’s 212m residents.

When it comes to the gambling and gaming industry, Africa should be the next big area to focus on. This is due to its huge population (over 1.2 billion people), the high rate of internet and smartphone penetration. Kenya, alongside South Africa, Nigeria and Ghana are some of the countries where the gambling industry has really expanded in the last couple of years.
In particular, the gambling industry has been booming in Kenya in the last couple of years. The success of the gambling industry in Kenya is greatly due to the hugely successful mobile money industry in Kenya. Virtually, every adult in Kenya has a mobile money account. In fact, MPESA, the leading mobile money platform in the country, is the dominant medium of financial transactions in Kenya. This, coupled with the high rate of internet and smartphone, has led to the success of sports betting and online casinos and, to a lesser extent, land-based casinos. In fact, the growth in sports betting and online casinos has been unbelievable since 2014.
There have been concerns, however, about the implications of the rising gambling culture in the country and lack of clear-cut regulations in terms of taxation. According to a survey by Geopoll, Kenya has the highest number of youths involved in gambling and gaming activities. There have been recent developments and proposed changes relating to the control of gambling and gaming industry in the country that industry players need to keep track on, to ensure compliance or be ready for adjustments if necessary.
Regulation of gambling and gaming activities in Kenya
When it comes to gambling and gaming regulations in Africa, Kenya is at the forefront compared to other countries; its regulation framework is more organised. Gambling and gaming laws are outlined in the Betting Lotteries and Gaming Acts of 1966. The Act puts the Betting Control and Licensing Board (BCLB) in charge of all administrative duties of gaming and gambling activities both at the national and county government level. This includes 11 bingo halls, 30 casinos, one horse racing track event and 3 Sportsbooks. The BCLB is placed, in turn, under the Ministry of Interior and Coordination of National Government.
The global gambling and gaming activities are on the rise, and newer and more sophisticated forms of gambling are blooming. This has raised concerns over the legal framework of gaming and gambling in Kenya. The Betting Lotteries and Gaming Acts of 1966 has all been caught up, and there is a need for its review.
Applying for a gaming licence in Kenya, the applicant is required to get in touch with the Betting Control and Licensing Board (BCLB) and fill a special form referred to as Form 13A. Upon completion, an application fee is paid to the board to carry out an evaluation to determine the suitability of the applicant.
After realising the huge potential in the online gambling industry in terms of the revenues collected, the Kenyan government decided to impose greater taxes on players and operators alike. Corporate tax for betting companies was increased from 20% to 35%. There were a lot of backlash from operators. SportPesa, arguably the largest sports betting operator in Kenya, withdrew its sponsorship for the national football team in retaliation. On their part, players were to part with 20% of their winnings. This regulation was, however, halted by the high court in April 2019.
All in all, the overall handling of online gambling and land-based casinos in Kenya has been great. This year, 2019, the government invited all stakeholders to a meeting and several things were proposed as outlined below.
Proposed new developments
The stakeholders meeting was held on 1st April 2019. The Cabinet Secretary to the Ministry of Interior and Coordination of National Government outlined several proposed measures and changes to the regulatory framework of the betting industry in the country. During the meeting, the Cabinet Secretary expressed the need for a total overhaul of the regulatory framework of the betting industry since it is inadequate. Among his major concern was the need to protect youths and the poor who are predominantly involved in gambling activities in Kenya. He insisted that online gambling and gaming has become a crisis.
The ministry announced the following proposed measures and changes:
1) The Ministry intends to come up with a gambling and gaming policy together with a Bill that will be presented to the National Assembly for consideration regarding new statutory regulation of betting activities upon completion of consultation among industry stakeholders.
2) The Cabinet Secretary announced that all gaming licences would stand suspended as from 1st July 2019 apart from those who will have complied with the law and their tax obligations as will be determined by the BCLB. The Cabinet Secretary expressed his concerns over low tax received from the sector compared to the huge revenue generated.
3) The Cabinet Secretary issued directions to the Communications Authority of Kenya and BCLB to ensure that advertisements are not repugnant to good taste or deceptive. He ordered the two bodies to review all advertisements relating to gaming and gambling activities in Kenya.
4) The Cabinet Secretary also ordered the Immigration department jointly with BCLB to document all agencies involved in gambling activities and vet all the foreign nationals involved in gaming and gambling activities.
The ministry announced that there would be another meeting later between the relevant government agencies, including The National Treasury and Communications Authority, and other industry players to collect their views on the running and operations in the gaming industry.
Endnote
The cabinet Secretary reiterated the ministry’s resolve to have clean, organised and reformed gambling and gaming industry in the country.
Among his commitment, the Cabinet Secretary promised an overhaul of the regulatory framework of the gambling and gaming sector. Operators and other industry players can expect significant regulatory and administrative changes in the gaming sector. They, therefore, need to keep track of any change and ensure compliance.
It would also be very vital for industry players to take part in the sectoral consultations between the government agencies and stakeholders. Their input in the proposed legal, regulatory review process is important. It will also help them anticipate and prepare adequately for the expected changes.

DD Consultus shall be attending the ICE expo between the 5th Feb – 7th Feb 2019, should you wish to set up a meeting with our gaming consultants.

DD Consultus shall be attending the ICE expo between the 5th Feb – 7th Feb 2019, should you wish to set up a meeting with our gaming consultants.