• Brazil Gaming Legislation Vs
• Brazil Gaming Legislation 2019

A new public consultation on the Brazilian regulation of fixed odds sports betting is now open. These are the preliminary draft regulations summarized:

Karen Marcela Sierra-Hughes is a Panamanian attorney with a Master’s in Commercial Law and Specialization in Public Law. Before joining GLI, she practiced Law in one of the most prestigious law firms in Panama and was later appointed as Legal Director of the Panama Gaming Control Board. Despite gambling being partially illegal in Brazil, there have been some significant recent developments before Congress and in the Brazilian Superior courts seeking a better and clearer regulation of such activities in the country. Loot boxes currently fall within a legal grey area, as no specific provisions exist on whether these are considered gambling activity. Latest Casino and Gambling News, Gaming Law & Legislation, Brazil, Casino closures, Licenses A little over five months after opening its doors in the southern Brazilian city of Porto Alegre and the Winfil slots hall has reportedly been officially ordered to close following multiple police raids. New Brazilian Gaming Regulations. An entity or consortium of companies duly incorporated pursuant to Brazilian laws, with head offices and administration in Brazil, that has obtained the authorization granted by the Ministry of Economy.

How will fixed odds sports betting work?

The fixed odds betting modality consists of a betting system with payment of prizes related to real sporting events, in which it is defined, at the moment of making each bet, how much the gambler can win in the event of getting the bet right. The bets can be made in a physical or virtual environment.

Who can bet?

Any person of at least 18 years old and who has an Individual Taxpayer’s Registry number in the case of a Brazilian citizen, or a valid passport number in the case of a foreigner.

Brazil Gaming Legislation Vs

Who can be an operator of the bets?

An entity or consortium of companies duly incorporated pursuant to Brazilian laws, with head offices and administration in Brazil, that has obtained the authorization granted by the Ministry of Economy

The process to obtain authorization

The entity must file the request to obtain the authorization together with the following documents: (i) evidence of payment of the authorization fee; (ii) clear criminal, administrative, civil, financial and tax certificates; (iii) declaration that the applicant has never illegally operated in regulated lottery markets and other betting systems with payment of cash prizes; (iv) declaration that there is no impediment to the applicant’s performance, as an operator, in regulated lottery markets and other betting systems with payment of cash prizes; (v) proper documentation, in accordance with the rules issued by the Ministry of Economy or successor body, to prove the absence of conviction in a final decision or, in the case of conviction rendered by a collegiate judicial body, to prove a period of eight years after the completion of the sentence following conviction, for the following crimes: (a) against: life, personal dignity, popular economy, public faith, public administration, public or private patrimony, tax order, financial system, capital markets, environment and public health; (b) those provided for in the bankruptcy law; (c) electoral, for which the law imposes a penalty restricting freedom; (d) abuse of authority, in cases where there is a condemnation leading to loss of public office or disqualification from the exercise of public function; (e) laundering or concealment of assets, rights and financial values; (f) drug trafficking and related drugs, racism, torture, terrorism and heinous crimes; (g) reduction to a condition analogous to slavery; or (h) criminal association.

The amount required for financial reservation

The operator of fixed odds betting shall constitute its own financial reserve of at least six million Reais (R$ 6,000,000.00), as a guarantee of its ability to pay the prizes to gamblers, as a preventive measure in case of insolvency of the legal entity.

Brazil Gaming Legislation 2019

Is there any fiscalization by the Ministry of Economy?

Yes. The operator shall provide clarification and display, for examination or expertise, all elements necessary for an audit. Any inspection procedures, once initiated, may last for as long as required.

What are the penalties in case of non-compliance with the rules of the Decree?

The offender will be subject to the following administrative sanctions, determined in accordance with the seriousness of the offense committed, by means of the due process of law, and the response and full defense are guarantee: (i) warning; (ii) simple fine; (iii) daily fine; (iv) seizure of instruments, documents and other objects and components intended for the operation of machinery and installations; (v) partial or total suspension of activities; (vi) interdiction of the establishment and the website; (vii) expiration of the authorization; (viii) prohibition to acquire the ownership of a new authorization for a maximum period of ten (10) years; (ix) temporary or permanent disqualification of systems, equipment or instruments that support bets; (x) declaration of unsuitability; and (xi) compulsory dissolution. The fines may be applied cumulatively with other penalties and shall be set at amounts of up to one hundred percent (100%) of the gross revenues, for each infringement.

Is there any other requirement for the exploitation of fixed odds sports betting in Brazil?

Yes. The operation of the fixed odds sports betting shall include the adoption and implementation of a policy of prevention of money laundering and terrorism financing compatible with the size and volume of the Lottery’s operations, which must comprise, at a minimum, procedures and controls intended for the: (i) due diligence to qualify clients and others involved in the operations carried out, when, pursuant to the regulations in force, the identification of the winner is mandatory; (ii) identification of the final beneficiary of the operations carried out; (iii) identification of operations or proposals for operations that are: a) suspicions; or b) of mandatory communication; (iv) periodic verification of the performance of permitted persons or agents; (v) mitigation of the risks that new products, services or technologies may be used for money laundering or terrorism financing; and (vi) periodic analysis of the effectiveness of the policy adopted.

By means of this new public consultation, the Ministry of Economy, i.e. the Secretariat of Evaluation, Planning, Energy and Lottery, intends to obtain suggestions in order to adapt the Decree to be in accordance with best world practices.

Participation in the public consultation can be made until 11:59pm on September 27, 2019. Through our local partners in Brazil, ARQ’s gaming unit has the expertise to assist clients in this respect. For further info kindly contact Kris Baron on [email protected].

Linked Services

Linked Services

Online betting in Brazil is a complex topic as it’s governed by very old laws, however this is all about to change, but maybe not until early 2017. As soon as any change is made this page will be updated to reflect it.

On this page the current legislation will be covered as well as a list of legal Brazil betting sites where you can hold an account:

Brazil Betting Sites & Bookmakers

The following is a list of the best betting sites for residents of Brazil:

Key Facts: Online Gambling In Brazil

• Laws passed in 1940s make most gambling illegal.
• Old laws are not enforced and many people gamble without prosecution in Brazil.
• Overseas operators are widely used and accept Brazilian customers.
• Government are currently working to license all gambling.
• New laws likely to pass late 2016 or early 2017 to fully legalise and regulate gambling.

Brazil Gambling Law & Legislation: Is it legal or illegal?

The story of gambling legislation in Brazil is a fascinating one which features plenty of twists and turns. The following timeline should give you a decent summary of what is an ever-changing tale:

1941 – Criminal Contravention Act

Before 1941 gambling was legal in Brazil, but this was changed by the passage of the 1941 Criminal Contravention Act which to this day still hasn’t been abolished or wholly superseded. The act rules that establishing or operating games of chance is an offence which can be punished by imprisonment. It also defines games of chance as:

a game in which winning or losing depends exclusively or principally on luck

bets on horses outside the racetrack or other places where such races are authorised

bets on any sport competition

1946 – Decree Law No. 9215

Gambling activities can be made legal in Brazil if the Criminal Contravention Act is superseded by independent legislation directly regulating the activity in question. For five years between 1941 and 1946, this was the case for casino gambling which was subject to licences, authorisation and concessions granted by federal, state and municipal governments. These were removed or annulled, however, in 1946 by Decree Law no. 9215 which made all casino gambling illegal.

1990-2007 – Flip-Flopping on Bingo

As a game of chance, bingo was amongst the activities outlawed by the Criminal Contravention Act. Its illegality was overturned, however, in 1990 by the passage of the ‘Pele Law’ which dictated that bingo could be legal if it was used to fund sports teams or activities. Unfortunately this led to bingo becoming a target for money launderers and organised crime, and Brazil’s Supreme Court outlawed it once again in 2007.

2008-2010 Trying to Apply 1940s Legislation to the New Millennium

Whilst Brazilian authorities agreed that the Criminal Contravention Act did make establishing and running online betting and gambling sites in Brazil illegal, the 75 year old act obviously doesn’t take overseas providers into account. For that reason, foreign based companies have long offered their services to Brazilian residents and the Brazilian government has been able to do little about it. There have been some attempts to pass legislation which would allow them to take greater action, most notably between 2008 and 2010, but none of this has ever been enacted.

2016 – Legalisation Bills

In Autumn 2016 – there were separate gambling legalisation bills being discussed in both Brazil’s lower house and their senate, as well as a seemingly notable political desire to get the legalisation process completed. If and when legislation is agreed, it would require only presidential sign off to be passed into law and it is widely expected that Brazil’s president may even create a national gambling regulatory body in advance of this to speed up the process further.

2018

Provisional Measure 846/2018 passed in Brazil’s senate which introduces licensing for online and land based sports betting services as well as dealing with the distribution of lottery proceeds.

Tax on Winnings

As the Brazilian gambling industry is – as of this moment – mostly unregulated and some forms of gambling are in fact illegal, there is obviously a big question surrounding taxation.

One of the major reasons that politicians are looking to legalise the industry, and have made moves to do so, is because of the fund raising possibility of gambling taxation. In the not too distant future, therefore, it would be no surprise to see new gambling tax laws introduced in Brazil. Whether these would tax punters or simply the companies providing them with gambling services, remains to be seen.

Lottery winners are currently taxed at 30%.

Deposit Methods

Due to the illegality of establishing and operating online gambling sites in Brazil, all current Brazilian punters are using overseas based providers. As we’ve discussed, the Brazilian government has no real ability to police or to regulate this, so the legal situation has no real bearing on the choice of deposit method.

As such, in the majority of cases, depositing via either debit card or credit card would likely be the easiest and best alternative. These methods offer quick and easy deposits, good levels of security and are catered for by almost all sites around.

If you want to remain anonymous though then using an e-wallet, such as Neteller, is a good idea. All that will show on your bank statement is transfer to and from Neteller and not the gambling sites.