Insight
LATAM ONLINE Brazil
The Internet in Brazil was launched in 1988. In 2011 Brazil ranked fifth in the world with nearly 89 million Internet users, 45 per cent of the population. In 2010, Brazil had 13,266,310 fixed broadband subscriptions, 6.8 per 100 residents; broadband Internet access was available in 88 per cent of Brazilian cities, surpassing all expectations for its expansion. By 2017 this value had risen to 64,7 per cent. In 2016 and 2017, major internet providers announced their interest in introducing data caps, a decision that was met with major backlash. Many technologies are used to bring broadband Internet to consumers, with DSL and cable being the most common (respectively, about 13 million and nine million connections), and 3G technologies. 4G technologies were introduced in April 2013 and presently are available in over 90 per cent of the country.
With no bricks and mortar betting solution on offer the online market in Brazil has grown considerably and it is now estimated that Brazilians gamble as much as US$600m a year via offshore sports betting sites.
Two major gaming bills - one in the Senate and the other in the Chamber of Deputies - both cover online gambling to a limited degree, but the Brazilian government now looks set to allow online gaming and sports betting via another legislative route.
PROVISIONAL MEASURE 846/18 Rising crime and security played an important role in shaping the outcome of the recent Presidential election. One of the newly elected Jair Bolsonaro’s flagship campaign issues had been to increase security for Brazilian citizens. Increased lottery income is expected to foot part of the bill. In a move that took many by surprise the National Congress of Brazil approved new gaming legislation that will allow for both online and land-based sports betting.
Brazil
Under Brazilian law any game involving a bet is a crime according to the Criminal Contravention Act of 1941. As this law still stands, any type of gaming activity that does not have its own regulations is considered to fall under the Act. Consequently, sports betting and online gambling remains banned for now. In fact, sports betting is still only allowed via horse races at official racetracks and via a number off-track betting shops. Major changes, however, are on the way with the impetus coming from the newly elected government
Te bill, Provisional Measure 846/18, deals mainly with how lottery funds are distributed giving priority to National Security. A much larger proportion of resources operated by Brazil’s largest state-owned bank and lottery operator –the Caixa Econômica Federal (CAIXA) will be earmarked for public security, while the bill seeks to raise additional income for the government by green lighting sports betting and gives the Ministry of Finance initially, just two years to get sports betting up and running. However, this can be extended for another two years.
As far back as 2012, CAIXA, along with the Ministry of Finance, has been looking at ways to offer sports betting in a limited way online and via sports betting shops, while lawmakers, as well as a number of other government departments, including the Sports Ministry, had unsuccessfully pushed for changes to Brazil’s gambling laws. Not only did the bill find overwhelming support, but it also passed through both chambers in record time.
Te bill was originally published in P44 NEWSWIRE / INTERACTIVE / MARKET DATA
As far back as 2012 CAIXA along with the Ministry of Finance has been looking at ways to offer sports betting in a limited way online and via sports betting shops while lawmakers as well as a number of other government departments including the Sports Ministry had unsuccessfully pushed for changes to Brazil’s gambling laws. Not only did the bill find
overwhelming support, but it also passed through both chambers in record time.
August 2018 as a new version of MP 841/2018. Te new text comes from proposed changes put forward by the Ministries of Culture and Sports so that they receive a higher percentage of revenue. Te bill is mainly focused around how lottery resources are to be distributed in the future. Te federal government anticipates that the newly approved lotteries legislation will guarantee annual revenue of about R$1bn for public security, R$63m for sports and R$443m for culture.
Sports betting and online gaming is covered in only the most generalised terms in Chapter V of the new bill - Betting on Fixed Odds. According to article 5: “Te fixed-rate betting lottery shall be authorised by the Ministry of Finance and shall be operated exclusively in a competitive environment and may be marketed in any commercial, physical and electronic distribution channels.”
In land-based sports betting establishments, a minimum of 80 per cent will need to be awarded back to the player, while this will stand at 89 per cent for online
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