Regulations for Online Gambling and Sports Betting in Brazil

Introduction

The Brazilian Ministry of Finance recently unveiled new regulations for online gambling and sports betting. These rules outline the types of games that will be allowed and the requirements they must meet. Some international gambling providers have already applied for Brazilian licenses.

Characteristics of Online Gambling

The regulations state that all online gambling activities must be based on randomness. This means that numbers, symbols, figures, and objects must be generated by a random generator. Players should also have access to a Paytable outlining all possible winning combinations before starting the game.

Permitted Games in Brazil

According to the new regulations, online slots, card games like Blackjack and Poker, and Roulette will be legalized in Brazil. Every game must be random, disclose winning odds upfront, and offer players a minimum 85% Return To Player (RTP) with a top prize that can be won by at least one out of 100 million players.

Licensing Applications

As the deadline for license applications nears, five companies have already submitted requests for Brazilian licenses. These include Betano, Sportingbet, Superbet, Rei do Pitaco, and Big Brazil. The Ministry of Finance plans to prioritize the applications of Sportingbet and Big Brazil. Failure to obtain a license by January 1, 2025, could result in severe penalties.

Government’s Delays

Despite announcing the regulations, Brazil’s government is behind schedule. Technical standards and enforcement rules for gambling are yet to be determined. The expected legalization date of the second half of this year may be pushed to January 1, 2025. It remains uncertain if the government will meet this revised deadline.