Brazil

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Brazil is a white-level online gambling jurisdiction because it's not clear which laws apply to Internet gambling and which do not.
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Brazil is the largest country in South America and is also the eastern-most country. Its north and east coasts are with the Atlantic Ocean, and it borders almost every other South American country to the south, west and north.

Overview

Brazil has been continuously known as one of the most popular and alluring destinations across the globe. While people from other countries have found amusement in experiencing the unique Brazilian culture, locals have long been deprived of one of the most popular forms of entertainment – gambling. Casino and sports betting shops, as well as online interactive gambling platforms were explicitly prohibited with a presidential decree back in 1946, and remained under such status for nearly half a century since.

Brazil Online Gambling Restrictions

A couple of decades ago, the gambling industry was made that much more diverse with the latest inventions – online casino and sports betting platforms. Enthusiastic players were primarily lured in by the range of offshore operators looking to profit from an unregulated market such as this one. However, the authorities soon realized the massive benefits of the industry, and have been working for nearly 10 years now on this issue.

Gambling Laws

Lottery games…

… were the first type of gaming format authorized in the country.

Back in May 2011, Caixa Economica Federal launched the first online lottery platform. Mega Sena tickets were sold here, while the instant lottery product Lotex was addressed by the end of 2015. Regulators authorized its takeover by a specific private commercial company that would ensure further progress, coverage and diversity.

Around the same time, Intralot managed to get authorization to provide virtual lottery games in 400+ venues and introduce this format in the Minas Gerais State. About half a year later, the Piaui state also provided its residents with legal online lottery services – Lotoshow.

Most recently, projections had been made about the privatization of the national lottery into two parts – Lotex and Sportsbetting. Regular lottery games have remained under the former’s platform, and after no private company made a bid on its concession, its management was delegated to Caixa Economica Federal. By the end of 2018, they had released an interactive lottery platform and thus created a need for a separate lottery regulatory body, a move that has been authorized by the Chamber of Deputies.

While lottery is known to find its way to legalization, sports betting and other gambling forms have taken a different legal trajectory.

In May, 2014, Senator Nogueira made an attempt to legalize both land-based and interactive gambling of various kinds. He introduced the 186/2014 Senate bill which faced multiple obstacles since then.

By late-mid 2015, legislators were hoping to progress on the matter through the Bill 671-2015 that would legalize interactive fixed odds betting. Nevertheless, the president vetoed the bill under the claim that it lacked further in-depth analysis and discussion to ensure proper enforcement.

Ultimately, by the end of 2016 (November)…

… the first SB 186/2014 was amended and thus approved by the Committee on National Development. The changes made the previously mentioned lottery operator Caixa Economica Federal the only authorized operator that could provide sports betting services. The amendments additionally enforced a 30% tax on player winnings, but were not discussed and approved by the Senate on the set dates.

Just two months short of 2019…

Online Gambling law for Brazil

sports betting legislation known as the Bill 846/2018 was ultimately approved by a joint committee, and was subsequently authorized by both the Senate and the Chamber of Deputies, as required.

Both land-based and online sports betting practices were included under this law, with the former required to pay out a minimum of 80%, with a cap of 14% on their gross wins and the remaining 6% being purposed as tax. As for the latter, 89% is the operator’s minimum payout, while 8% is their maximum win, with the remaining 3% - taxes.

On December 12, 2018, land-based and online sports betting practices were legalized in Brazil as the President officially signed the respective Bill.

Licensing

The situation on licensing was just as unregulated in Brazil as the actual legality of the operators and games requiring licenses. In the past, no licenses have been awarded to the wide range of offshore and local operators catering to the market freely. However, after stricter measures have been introduced, there were attempts to define the process of licensing operators, in the text of the MPV 671/2015 and the amendments to the 186/2014 Senate bill.

Nevertheless, as interactive lottery and sports betting, along with land-based bookmaker legalization was officially announced, law-makers set out to handle this matter as well. Under a proposal by the Chamber of Deputies, lottery is said to be regulated by a separate authoritative body financed by the National Public Security Fund. Alternately, the existing Ministry of Finance has been appointed with the task of defining the legal regulatory and licensing policies for sports betting practices in the two years following its legalization. With such prospects, the legal landscape is definitely changing for the better.

Player Protections

So far, there have been no explicitly stated player protection regulations as part of the newly established industry. While there are some general consumer rights laws, the Marco Civil law is taken to be the most applicable due to its provision regarding any communication made through ISP with Brazilian residents. It claims that any such exchange of information or service is subject to Brazilian laws and can be addressed legally, even though no legal cases of this nature have actually been recorded so far.

Brazil is the largest country in South America and is also the eastern-most country. Its north and east coasts are with the Atlantic Ocean, and it borders almost every other South American country to the south, west and north. Overview Brazil has been continuously known as one of the most popular and alluring destinations across the globe. While people from other countries have found amusement in experiencing the unique Brazilian culture, locals have long been deprived of one of the most...
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