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With a population of 212 million people, Brazil is both the largest country in South America and, potentially, one of the biggest sports betting markets on the planet. Earlier this week, Secretariat of Evaluation, Planning, Energy and Lottery (SECAP), the agency tasked with regulating Brazil’s gaming industry, released a proposed regulatory framework for sports betting operators.
At the heart of the draft proposal is a recommendation that operators work under a five-year license that would cost 22.2 million BRL ($4.5 million USD). Operators can apply for as many licenses as they’d like, but all operators must have a physical business presence in Brazil – thought the size and scale of the required physical presence are still unclear.
Operators looking to get a toehold in Brazil must also show “sufficient capital and economic and financial capacity”. In this case, that means that operators will have to prove a certain amount of available capitol based on the volume of bets they’re planning on taking.
SECAP, like every other regulatory agency on the planet, is instituting strict regulations on marketing and advertising for operators. Licensed operators will be barred from presenting sports betting as a potential solution for financial problems; a full-time job; or as a game of skill.
Unlicensed operators who are currently serving Brazilians have six months to get into compliance. Regulators are also suggesting a six-month “sandbox” period when certain operators can act as beta testers for the new rules.
With the new regulatory framework, SECAP is looking to have operators actually working under the rules within 90 days and President Bolsinaro is expected to sign legislation doing exactly that on May 10.