The path to ICE 2024 has been closely monitored by key players in the betting industry, especially with the significant developments in Latin America’s largest market, Brazil. This year, amidst much anticipation, Brazil has taken a giant leap forward in the realm of sports betting by legalizing the practice after President Luiz Inácio Lula da Silva sanctioned Provisional Measure (PM) No. 1,182 in July, marking an end to perennial delays.
However, this beginning was shrouded in uncertainty as the PM awaited confirmation from Brazil’s National Congress within a four-month window. The PM, which also included amendments to the 2018 sports betting legislation under Law No. 13,756, stirred quite the controversy. Legal experts and industry insiders were predominantly critical of the PM, with complaints stemming largely from the implications of heightened taxation, as delineated by Luiz Felipe Maia, a distinguished founding partner at Brazilian law firm Maia Yoshiyasu Advogados.
In an effort to provide a comprehensive overview of Brazil’s intricate sports betting saga, iGB in collaboration with Sportingtech organized an enlightening webinar in August. The discourse continued to evolve, and September brought a new twist when Brazil’s Chamber of Deputies greenlighted Bill 3,626/23, which proposed edits to the PM and sustained an 18% tax rate on revenues while introducing the legalization of online casinos in addition to sports betting.
Further clarifications came about in October when Brazil’s Ministry of Finance delineated the essential criteria for obtaining sports betting licenses through Decree 1330. The decree opened the gates for foreign companies to operate in Brazil, provided they establish a subsidiary within the nation, and mandated the establishment of local customer support centers capable of delivering 24/7 assistance in Portuguese.
Notable stipulations included a revenue tax bump from 16% to 18% and rigorous marketing regulations. However, in a turn of events, November saw the Economic Affairs Commission (CAE) endorse a reduced rate of 12%. As the Brazilian Senate mulls over the amended Bill 3,626/23 in the week leading up to the 27th of November, the landscape of sports betting and igaming in Brazil approaches the cusp of definitive regulatory approval.
Our reporting on Sports betting on iGB will remain vigilant as these events unfold and will feature prominently at ICE 2024. The intricacies of Brazil’s journey towards sports betting legalization were a recurring topic on the World Series of Politics podcast. Hosts Brandt Iden and Brendan Bussman invited Hugo Baungartner to cast light on the developments, while the following episodes dissected legislative details and market prospects.
IGB and EveryMatrix zeroed in on the Brazilian market with the first Edition of their Slot Trumps player behavior report, reflecting the international interest in the region. Entain’s CEO Jette Nygaard-Andersen expressed readiness for a live Brazilian market during the company’s Q2 and H1 results announcement, highlighting Entain’s strategic position to foster growth in emerging markets, particularly after acquiring the local sports media giant 365scores in April.
Meanwhile, Peru’s Ministry of Foreign Trade and Tourism sanctioned sports betting and igaming regulations projected to be implemented on February 9, 2024, providing a one-month window for license applications. Colombia’s gaming regulator Coljuegos stepped forward with a proposal to become the nation’s advertising regulator, potentially enabling select operator partnerships with sports teams.
In noteworthy industry moves, Betfair Colombia was obtained by Stake.com, whose chief strategy officer viewed the Colombian market as essential for expansion in Latin America. Furthermore, GR8 Tech made waves with the introduction of GR8 Sportsbook, a cutting-edge platform offering a diverse spectrum of sports, esports, and constant fantasy sports betting, set to revolutionize the iGaming experience.
Evidently, the advancements in sports betting and igaming across Latin America throughout 2023 have magnetized global operators, poised for the opportunities that await at ICE 2024 and beyond.
