Report broken down by state on expanding models for online gambling, lotteries, and sports betting; reserved exclusively for readers of Gambling Analytics
Brazil is the fifth-largest country in the world and the most populated in Latin America, with 3,265,080 square miles and over 215 million inhabitants. Brazil has 26 states, one federal district, and 5,570 municipalities.
Brazil’s GDP has fallen since 2012 due to the real’s depreciation versus the US dollar and the 2015 economic recession. Thus, the world’s sixth-largest economy in 2011 is now the 12th.
Brazil has banned most gambling for 70 years. Since the 1941 ban on games of chance, only state-monopoly lotteries and horse racing betting have been authorized. Poker is permitted in Brazil because it is a skill game.
Gambling regulation and taxation may assist the government raise cash during the current economic crisis. Congress is debating casino, bingo, online gaming, and lotteries bills. In 2020, an Integrated Resort Bill was introduced.
Law No. 13,155 of 4 August 2015 established Lotex, a virtual and land-based instant lottery (sweepstakes), opening the Brazilian gaming sector. In October 2020, the sole Lotex privatisation bidder forfeited the award. As a result, the government will need to reassess the business model and likely lower the financial and technical requirements to attract more bidders in any future Lotex privatization attempt.
The Ministry of Economy was given four years to regulate fixed-odds sports betting and grant licenses by Law No. 13,756 of 12 December 2018. Accordingly, implementing regulations were expected to be enacted by December 2022, but proximity to the Brazilian presidential and congressional elections held earlier in October proved critical, and willingness to approve regulations decreased significantly as former president Jair Bolsonaro lost his re-election bid to current President Luís Inácio Lula da Silva (himself a former incumbent).
In light of several match-fixing cases in the second level of the national football league, the new administration has promised sports betting restrictions soon. The proposed reforms will improve compliance and oversight, making match-fixing easier to spot and penalize.
At the end of 2022, press reports noted that President Lula’s political allies welcomed increased scrutiny of the prospective regulations because they would allow overseas operators to generate more revenue, which would fund the new administration’s social programs and limit unpopular tax hikes. New federal regulations are expected by the second quarter of 2023, especially since state administrations have already begun regulatory mechanisms to allow sports betting businesses to operate in their jurisdictions.
Contents
- 1 i Definitions
- 2 ii Gambling policy
- 3 iii State control and private enterprise
- 4 iv Territorial issues
- 5 v Offshore gambling
- 6 Legal and regulatory framework
- 7 i Legislation and jurisprudence
- 8 ii The regulator
- 9 iii Remote and land-based gambling
- 10 iv Land-based gambling
- 11 v Remote gambling
- 12 vi Ancillary matters
- 13 vii Financial payment mechanisms
- 14 The licensing process
- 15 i Application and renewal
- 16 ii Sanctions for non-compliance
- 17 Wrongdoing
- 18 Taxation
- 19 Advertising and marketing
- 20 The year in review
- 21 Outlook
i Definitions
Brazil generally does not regulate gambling. Since the 1940s, Brazil has only allowed state-owned lotteries and horse-race betting. In the mid-2000s, bingo and slot machines were banned.
Brazil’s gaming regulation is still developing. The Civil Code names but doesn’t define “game” contracts. Jurisprudence defines it.
Luiz da Cunha Gonçalves defines a game contract as ‘a commitment, agreed as a pastime or in desire of money, between two or more individuals, in which each player agrees to pay a certain sum of cash or something else to the other parties if he or she loses, based on some future event, implementation of which depends, at least in part, on the activity of the players’.
Clóvis Beviláqua, who wrote the first Brazilian Civil Code, defines a game contract as a random contract in which two or more people guarantee a specified sum to the contractor who wins the chance. Pablo Stolze Gagliano and Rodolfo Pamplona Filho explain game contracts in detail:
The contract game is a legal transaction in which two or more parties make a guarantee (typically financial) to the person who performs an act in which everyone participates and wins.
The game’s outcome depends on each player’s intelligence, skill, strength, or luck.
The bet contract is a legal transaction in which two or more parties with different opinions about an event commit to perform a specific action (usually monetary) to benefit the party whose viewpoint prevails. Thus, in the bet, each side (called a bettor) merely needs to share their viewpoint to affect the outcome.
A game’s outcome depends on the parties’ actions, but a bet’s outcome depends on facts. Though generally accepted and applied by courts, these definitions have been formed through jurisprudence and are not explicitly laid out by law.
Article 50 of Decree-Law No. 3,688 of 3 October 1941 (the Criminal Misdemeanour Law) defines gambling as:
- a game in which winning or losing depends exclusively or principally on chance;
- bets on horse races outside the racecourse or other authorised venues; and
- bets on any other sport competition.
A public place is defined as:
- a private house in which games of chance are held, when those who usually take part are not members of the family that live at the house;
- a hotel or collective residence where the guests or residents are offered games of chance;
- the headquarters or premises of a company or association where games of chance are held; and
- an establishment intended for the operation of games of chance, even if its purpose is disguised.
Games of chance are misdemeanors, minor offenses. Thus, a misdemeanor is less serious than a Brazilian criminal offense. “Misdemeanor” is used to implement “moral policing” to “prevent certain illegal and vicious acts, or defend certain moral sentiments regarded as indispensable to harmonious social coexistence, the effects of which are harmful to the interests of the collectivity,” according to Professor Humberto José da Nova.
Games of skill depend more on talent than luck. These legal.
Article 51 of the Criminal Misdemeanour Law defines lottery as a draw of tickets, lists, coupons, vouchers, signs, symbols, or similar techniques to award rewards. Caixa, the responsible state operator and regulator, oversees pool betting, or bolão, which allows players to establish a group by choosing the same numbers under one bet registered at any of the 13,000 lottery terminals nationwide. Online pool betting is currently prohibited. After being registered in the system, the bet generates a receipt for each participant, who can redeem their prize according to their stake if successful. The lottery house may charge a service fee of up to 35% of the share quota value if the participant buys shares in its pools.
Article 51 of the Criminal Misdemeanour Law forbids the operation or marketing of unlicensed lottery games in Brazil, including the distribution of international lottery tickets. The Brazilian lottery-like jogo do bicho (animal game) is similarly illegal.
Law No. 7,291 of 19 December 1984 and Decree No. 96,993 of 17 October 1988 regulate horse-race betting.
Contest regulation is federally regulated in Brazil and treated equally in all 26 states and the Federal District. Law No. 5,768 of 20 December 1971, Decree No. 70,951 of 9 August 1972, and Law No. 13,756/2018 define prize promotions in Brazil as contests that promote products or companies.
Finally, Bill No. 2796/2021, which is expected to pass, will define fantasy games legally. The Senate must adopt the Bill after the Chamber of Deputies approved it in 2022. Article 2, Section 3:
Fantasy games are virtual tournaments based on real sports events, where:
- virtual teams are formed whose performance depends eminently on the knowledge, strategy and skills of the users;
- the rules are pre-established, including the existence of eventual prizes of any kind;
- the value of the prize does not depend on the number of participants or the amounts raised through the collection of registration fees; and
- the results are not solely determined by the score or isolated activity of a single athlete or a single team in real competition.
ii Gambling policy
Since 1946, Brazil has banned gambling. Many experts believe Brazil’s gambling ban was a response to industrialization, as free men needed to work instead of play. This and the religious conviction that “by the sweat of your brow shall you eat your bread” made gambling unpopular. Brazil no longer accepts this belief.
However, gambling in Brazil is often believed to be a cover for money laundering and run by criminal organizations. Bingo halls, slot machines, and jogo do bicho are freely accessible in Brazil despite the general ban.
iii State control and private enterprise
Private companies can run poker, skill, and social games. These activities require no license.
The Ministry of Agriculture, Livestock, and Food Supply authorizes non-profit racecourse owners to gamble on horses. These organizations can hire agents to facilitate betting and private suppliers, which are neither licensed or regulated.
State-owned lotteries existed until 2020. After Decree No. 50,954 of 14 July 1961 terminated all private lottery licenses, Caixa took over the government lottery.
Caixa and state lottery operators could engage vendors through public procurement. These providers needed no license. In recent years, this framework changed drastically.
The Supreme Court declared the federal lottery monopoly unlawful and a “unjustified privilege granted to the Union by a centralised piece of legislation enacted during the Brazilian military regime” in September 2020. Thus, only the federal government can legislate on lottery matters, while both the federal and state governments can run and sell lottery items.
All states can now offer sports betting due to this verdict. In this case, the federal government may grant federal licenses to online and retail firms nationwide, regardless of state license restrictions.
Each state can run sports betting directly or with a private partner. In Brazil, offering a state lottery beyond state territory is a crime, thus how to determine the location of an online bet will be debated.
The Federal District and more than 20 of the 27 states have started political and legislative processes to build their own lotteries or improve their existing ones. These political and legislative changes usually entail private sector partnerships to make lotteries more efficient and profitable.
After failing to privatize Lotex, the federal government is holding another sweepstakes offer.
iv Territorial issues
After bingo and slot machines were legalized in 1993, state lotteries began developing new gaming products, awarding licenses for bingo halls, slot machine parlours, and even online gaming based on state rules. In 2007, the Supreme Federal Court ruled that states and municipalities could not legislate gambling: ‘Any state or district law or legislative act that regulates raffles and consortiums, including bingo and lotteries, is unconstitutional.’
In 2009, one Supreme Court judge ruled that state lottery laws enacted before binding judgment No. 2 of 6 June 2007 were legitimate.
States might legislate lotteries if they followed the Union’s “regulatory framework” after the 2020 Supreme Court judgment. Since Law No. 13,756/2018 established a general framework for fixed-odds sports betting, several states (and even municipalities) have enacted laws or decrees to establish basic rules for such activities and to start local tenders for partnerships with private operators. Paraíba is the first state to regulate sports betting in State Decree 43,376 of 16 January 2023, with a tender to be issued in the coming months, while Minas Gerais is the first to provide services through its official website, operated by Intralot Brasil.
v Offshore gambling
Brazilians can buy offshore gaming products through a legal loophole. Brazilian law states that absent parties’ contracts are implemented in the proposer’s place. Article 9, Section 2 of the Introductory Law on Brazilian Law and Article 435 of the Civil Code state this.
Thus, if an offshore operator’s website is hosted in a gambling-authorized state, the Brazilian client’s contract with that operator is lawful and subject to that jurisdiction’s legislation. This affects Brazilian consumer and data protection regulations and unlawful transborder financial activities, which may be criminal. However, the government has not pursued international operators.
Legal and regulatory framework
i Legislation and jurisprudence
Brazil’s Criminal Misdemeanour Law bans chance games. Under the Act, anyone engaging in unlicensed gambling may be prosecuted. Caixa’s lotteries monopoly is established by Decree Law No. 50,954 of 14 July 1961. Law No. 7,291/1984 and Decree No. 96,993/1988 regulate horse-race betting.
An appeals court in Rio Grande do Sul ruled that gambling is legal since Article 50 of the Criminal Misdemeanour Law is unconstitutional. The public prosecutor appealed that ruling, and the Supreme Federal Court has awarded universal binding effect, meaning that the decision in this instance will be binding for all similar cases in the country. Until the Supreme Federal Court rules, appeals court justices can resolve cases or suspend judgment.
In March 2022, the São Paulo state court of appeals, the Court of Justice of São Paulo, dismissed an individual accused of hosting games of chance using the same rationale as its Rio Grande do Sul sister court.
ii The regulator
SECAP regulates Brazilian lotteries. State lotteries must follow Secretariat gaming guidelines and cannot establish new games.
The Ministry of Agriculture, Livestock, and Food Supply regulates horse racing.
The old Ministry of Sports (now the Ministry of Citizenship) recognizes poker as a sport and does not regulate social games or other skill games.
The Ministry of Economy authorizes Caixa or the Secretariat to provide rewards for free.
iii Remote and land-based gambling
Online and brick-and-mortar horse-race betting are the same if the betting strategy incorporates both. Caixa banking clients can wager online on lotteries, but lottery points of sale cannot.
iv Land-based gambling
Brazil prohibits land-based gaming. Caixa has licensed around 13,000 privately operated lottery points of sale, which also accept general services bill payments. Around 200 jockey club agencies and agents can accept bets on local and foreign races. Brazil’s biggest cities have many poker clubs.
Law No. 13,756/2018 allows land-based and internet operators to provide fixed-odds sports betting as a lottery. Decree No. 9,327/2018, which regulates Lotex, defines physical bets as those placed by the client when buying a paper ticket and virtual bets as those made electronically.
Law No. 13,756/2018 established the fixed-odds-betting lottery as an exclusive Union public utility for nationwide commercial exploitation. This sort of lottery involves wagers on real sporting events with a predetermined payoff.
Land-based | Online | |
---|---|---|
Types of bets allowed | Only fixed odds on sports events | |
Regulator | Ministry of Economy | |
Regulations | To be issued by the Ministry of Economy in 2022 (as the term had already been renewed for an additional two years) | |
Licensing | Authorisation (without tender) or concession (with previous public tender) and yet to be defined by the regulations | |
Number of licences | To be set by the Ministry of Economy | |
Mandatory payments (calculated on turnover) | 0.10 per cent for social security;0.82 per cent of the remaining balance for educational entities that fulfil national requirements for Ministry of Education basic education evaluations;2.55 per cent to the National Public Security Fund (FNSP;)1.63 per cent of the remaining balance for Brazilian sports entities that assign the rights to use their names, brands, emblems, hymns, symbols and the like for dissemination and the implementation of the fixed-odds betting lottery; and95 per cent at most to cover expenses of cost and maintenance of the operating agent of this lottery type. | 0.05 per cent for social security;0.82 per cent of the remaining balance for educational entities that fulfil national requirements for Ministry of Education basic education evaluations;2.55 per cent to the FNSP;1.63 per cent of the remaining balance for Brazilian sports entities that assign the rights to use their names, brands, emblems, hymns, symbols and the like for dissemination and the implementation of the fixed-odds betting lottery; and95 per cent at most to cover expenses of cost and maintenance of the operating agent of this lottery type. |
Taxation on players’ winnings | 30 per cent withholding tax on each prize over 1,903.98 reais* | |
Taxation on the operator | Varies between 0.174 per cent and 0.294 per cent of the previous month’s payout, according to Annex I of Law No. 13,756/2018. | |
Other applicable taxes | Ordinary corporate taxes:income tax: 15–25 per cent on actual profits;social contribution on profits: 9 per cent on actual profits;PIS and COFINS: 9.25 per cent on gross gaming revenue (some expenses are deductible); andmunicipal services tax: 2–5 per cent on gross gaming revenue. | |
Advertising | This will be guided by best practice in corporate social responsibility, according to regulations that have still to be defined. | |
Anti-money laundering | The operator will have to send information to the Council for Control of Financial Activities, according to regulations that have still to be defined. | |
* This amount may change yearly and corresponds to the income tax exemption limit for individuals. |
The Ministry of Economy regulates fixed-odds betting lotteries for four years by law. If the government misses this deadline, there is no legal penalty. The competition model—whether the number of licences will be unlimited or limited, whether there will be a public tender for licences, or whether applicants will only have to pay a licence fee and comply with regulatory requirements—will define the regulatory regime. After three public consultations, SECAP, the sports betting regulator, is anticipated to release regulatory legislation in the coming months.
v Remote gambling
Brazil has no internet gambling laws. Brazil has online horse-racing betting, and Caixa offers it to Caixa bank account customers. Brazil’s offshore companies dominate sports betting and bingo.
vi Ancillary matters
There are no specific provisions on ancillary gambling matters at the moment.
vii Financial payment mechanisms
There are no specific provisions on payment mechanisms at present.
The licensing process
i Application and renewal
The Ministry of Agriculture issues horse-racing gambling licenses. A non-profit business lawfully incorporated in Brazil with a racecourse must demonstrate the technical and fiscal sustainability of the weekly racing schedule and race field floor layout. That business must submit a general betting plan, including prizes, ticket value, minimum and maximum betting amounts, and payouts for each game played by the operator.
The Ministry of Agriculture, Livestock, and Food Supply must approve horse-racing agents’ licenses. The authorized horse-racing entity must submit this application and be fully liable for all agent actions. The agent license allows betting at the designated venue. Horse-racing workers and suppliers are unlicensed and unregulated.
Horse-racing entities and their agents have lifetime authorizations. After administrative proceedings, non-compliance might lead to revocation.
ii Sanctions for non-compliance
Horse-race betting operators who violate those restrictions face three penalties: penalty, fine, and license revocation.
Article 50 of the Criminal Misdemeanour Law penalizes the operation of games of chance in public places with a three-month to one-year prison sentence and a fine. Foreign lotteries sold in Brazil carry a four-month to one-year prison sentence and a fine.13
Illegal gambling players may be fined. Law No. 13,155 on 4 August 2015 revised Article 50 of the Criminal Misdemeanour Law to penalise players and affiliates between 2,000 and 200,000 reais for illicit online or offline gaming.
Advertising unlicensed lotteries is fined. Article 50 of the National Council for Advertising Self-Regulation (CONAR)’s Advertising Self-Regulation Code penalizes advertising that “induces to criminal or illegal activities” with a warning, a recommendation to modify, or a recommendation to suspend.
According to Article 22 of Law No. 7,492 of 16 June 1986, those who make international payments to offshore gaming companies without reporting to the Central Bank of Brazil and paying taxes may be imprisoned for two to six years, fined, and required to pay all taxes.
Wrongdoing
Bets are contracts under the Civil Code, hence only adults can gamble. The Child and Adolescent Statute of Brazil prohibits children and teens from entering billiards, snooker, and betting facilities.
General advertising rules in Brazil may affect gambling, as do anti-money laundering rules in Law No. 9,613 of 3 March 1998 and Law No. 12,846 of 1 August 2013.
Article 1 of Law No. 9,613 of 3 March 1998 defines laundering as “concealment or dissimulation of the nature, origin, location, availability, handling or ownership of assets, rights or valuables directly or indirectly originated from criminal activities”.
Article 10 of Law No. 9,613 requires prize-giving companies to identify clients and retain data for five years. Brazil joined the Financial Action Task Force and its South American counterpart in 2000.
Brazil’s anti-corruption law, Law No. 12,846 of 1 August 2013, targets firms having activities in Brazil. This law, like the UK Bribery Act, imposed civil, administrative, and criminal duties.
Taxation
Government-owned lottery operators are not taxed. Their proceeds go to sports, education, health, culture, and other legal social goals.
Jockey clubs, as non-profit entities, pay conventional corporation taxes (excluding income taxes) and 1.5 percent of the adjusted net win (bets minus awards for winning bets, minus jockey prizes) to the Coordination Commission of National Equestrian Horse Breeders.
Gamblers are taxed. Article 676 of Decree-Law No. 3,000 of 26 March 1999 requires a 30% exclusive withholding tax on lottery and horse-racing earnings.
Poker prize income tax withholding is varied. The Federal Revenue of Brazil considers rewards that depend on participant performance to constitute remuneration for labour, whether they are cash or products and services. Thus, if a Brazilian legal company pays the award to a fiscally resident Brazilian, it will be subject to withholding tax on personal income16 at the following progressive tax rates.
Income at or over (reais) | Up to (reais) | Tax rate (per cent) | Deductible tax amount (reais) |
---|---|---|---|
0 | 1,903.98 | Exempt | zero |
1,903.99 | 2,826.65 | 7.5 | 142.80 |
2,826.66 | 3,751.05 | 15.0 | 354.80 |
3,751.06 | 4,664.68 | 22.5 | 636.13 |
4,664.68 | and above | 27.5 | 869.36 |
Brazilian players’ sports betting and casino earnings from offshore websites or land-based operators are taxed at the percentage rates shown above.
Law No. 13,756/2018 requires 30% withholding tax on fixed-odds sports betting lottery winners beyond the personal income tax exemption level (1,903.99 reais).
Advertising and marketing
Publishing, even indirectly, the operation or results of unlicensed lotteries in newspapers, radio, or other media is a violation of Article 57 of the Criminal Misdemeanour Law, punishable by a fine. The criminal code does not limit advertising for other gaming.
According to Decree-Law No. 4,563 on 31 December 2002, all advertising in Brazil must comply with the Standards Executive Council (CENP) rules. CENP manages agency-advertiser relations, whereas CONAR oversees advertising content ethics.
CENP and CONAR are advertising sector non-governmental organizations that develop their own laws and codes. CONAR’s Advertising Self-Regulation Code also prohibits ads that “induces criminal or illegal activities.”
Many casino and poker companies have had trouble advertising in Brazil due to this rule. CONAR banned Discovery Channel advertising for Full Tilt Poker in 2009. Poker is a game of chance, hence it’s outlawed in Brazil. CONAR permitted the advertising after deciding poker is a skill game. CONAR also banned Sportingbet from advertising in Brazil that year. Sportingbet contested this ban, which the Brazilian courts upheld.
In several cases, CONAR suspended advertising of sports betting companies located and licensed in other countries based on Article 21 of the Advertising Self-Regulation Code, ignoring the territoriality rule of Article 2 of the Criminal Misdemeanour Law, which prevents this criminal law from being applied to acts committed outside national territory.
For years, foreign organizations have operated websites in Portuguese and accepted bets from Brazilian internet users, as well as advertising websites without betting content, such as statistics pages or sports recommendations. Since social gaming websites (.nets) are lawful in Brazil, they can advertise freely.
Since sports betting is permitted under Law No. 13,756/2018, CONAR can no longer restrict betting site advertising. Sports betting corporations fund many soccer teams due to this legal development.
As mentioned, Brazil’s federal government regulates contests, which are prize promotions under Law No. 5,768, of 20 December 1971, Decree No. 70,951 of 9 August 1972, and Law No. 13,756/2018. Also applicable:
- Ordinance SEAE 7,638/2022 introduces legislation on commercial promotions carried out on social networks;
- Technical Note 11/2018/COGPS/SUFIL/SEFEL-MF provides an explanatory list of cases in which the free distribution of prizes is subject to prior authorisation by SECAP;
- Ordinance MF 67 of 31 July 2017 establishes that all authorisation requests addressed to SECAP must be made online, through the Prize Promotion Control System;
- Ordinance MF 422 of 18 July 2013 establishes the cases in which contests are not deemed to be exclusively artistic, cultural, sportive or recreational for free prizes or awards distribution purposes; and
- Ordinance MF No. 41 of 19 February 2008 regulates the free distribution of prizes for advertisement purposes, when performed by raffle, gift certificates, contests or similar operations.
The four types of free distribution of prizes to consumers are outlined below:
- raffle: raffle elements are distributed, numbered in series, and those to be awarded prizes are defined on the basis of the results of the drawing of the federal lottery or on a combination of numbers from such results;
- gift certificates: gift certificates are randomly hidden inside a product or in the product’s packaging and will be exchangeable for prizes at the exchange stations;
- contests: contests are based on forecasts, calculations, intelligence testing, games of skill or competitions of any nature; contests for advertising purposes: these must be authorised by SECAP; and
- similar operation: this type is conceived as a combination of elements characteristic of each of the other types of prize promotion, retaining the original concepts for qualifying competitors and verifying winners; it may be presented as being ‘similar to contest’, ‘similar to gift certificate’ and ‘similar to raffle’.
The Ministry of Economy has processes to determine if a contest is a prize promotion or a cultural contest to prevent fraud. Ministerial Ordinance No. 422 of 18 July 2013 specifies when a contest becomes a prize promotion (subject to rules and prior authorization).
The year in review
The COVID-19 pandemic slowed gambling regulation measures. The end-of-year and presidential election delayed fixed-odds sports betting legislation.
Gambling regulation and legalization were discussed in 2022 to increase government revenue and fund pandemic recovery. After Congress approved Bill of Law No. 1,561/2020, Law No. 14,455 of 21 September 2022 mandated temporary lotteries for health and tourism.
Bill No. 442/1991, initiated by the Chamber of Deputies, addresses gaming. (Previously, another gaming bill, Senate Bill No. 186/2014, was pulled from the archive for discussion in 2022, but no further action was made that year, therefore the Bill was officially archived, per parliamentary regulations.)
On February 23, 2022, Bill 442/1991 was introduced and approved. Casino, bingo, video bingo, jogo do bicho, horse-race betting, and online gaming would be treated as typical economic activities under the Bill’s potential new legal framework, unlike lotteries (sports betting included). Pari-mutuel and direct bets are not defined by the Bill.
The Senate will review and vote on Bill No. 2,234/2022, which has been renumbered. Before presidential approval, it must be authorized by the initiating house if altered. If the President vetoes the Bill, the National Congress can change it and overturn it.
States are offering federally allowed lottery games, including online lottery games and sports betting, despite the lack of federal restrictions.
Outlook
Brazilian gaming will be busy in 2023.
Fixed-odds sports betting may be federally regulated in 2023.
Most Brazilian states (and some municipalities) are enacting subnational lottery rules, and some have started bidding processes for private-sector partnerships.
For instance, Minas Gerais state-owned lottery company Loteria Mineira (LEMG) has launched the first official Brazilian sports betting website within state borders. Lotominas.bet is a platform for state-authorized lotteries (Keno X, Mar de Prêmios, Minas 6, Robocash, Floresta Encantada), but its major draw is fixed-odds sports betting. Bettors can wager on local or international matches like the Minas Gerais football championship or the Italian league.
LEMG constructed the website under its contract with Intralot, but Paraíba and Rio de Janeiro have published public proposals for new lottery operators this year. Regulatory competition between and within states is common, and these factors will pressure the Union to enact the awaited sports betting regime more quickly or risk falling behind in the operation of a betting model that can generate significant federal revenue.
In 2023, Série B footballers were accused of match-fixing. Bettors allegedly persuaded football players to sway results. Players would receive part of the bet wins. The case is ongoing, but the parliamentary standstill on Law No. 13,756/2018’s implementing regulations has revealed several flaws. Sponsors abroad prohibit the government from collecting domestic taxes. Unregulated activity might lead to a shadow market and crimes.
The government is considering all these factors, and recent press reports indicate that the executive branch has formed a working group to enact the sports betting regulatory framework with the National Congress within weeks.
Finally, a new government allows fresh aims. Fernando Haddad, the new Finance Minister, has pledged to raise government revenue through fairer taxation and reduce public spending to reasonable levels. Gambling regulation would boost tourism and this goal.
Gambling legalization supporters in the Chamber of Deputies remain strong. Felipe Carreras, a federal deputy in the Chamber and rapporteur of the new gambling regulatory framework, called for an integrated transitional group to develop tourism policies in January 2023. Longtime supporters of gambling legalization, such as the lower house speaker, Arthur Lira, and the Federal Senate president, Rodrigo Pacheco, have secured another term, raising realistic expectations that discussions will continue in and beyond both legislative chambers and with the executive branch.