The operation of sports betting in the Brazilian state of Paraíba will be delegated by Lotep through accreditation and subsequent permission to all interested parties who meet the technical requirements contained in the Terms of Reference of Notice 003/2023, without restriction on the number of accredited legal entities.
The fixed grant, in the amount of R$2 million (US$407,000), must be paid by the fifth business day after signing the contract and the variable grant was stipulated at 5% of the GGR. Operators must collect income tax from bettors on prizes that exceed the exempt value. Amounts exceeding R$10,000 (US# 2,035) must be reported to Coaf (Financial Activities Control Council).
In addition to sports betting, future licensees will also be able to explore online games and virtual events.
The notice determines responsible gaming rules, including the possibility of self-exclusion by bettors, as well as best practices in the dissemination and exploitation of sports betting, which must be restricted to the state of Paraíba.
All events operated by permit holders must have unique coding within Lotep's management platform and management, monitoring and inspection will be through an API provided by the authority.
Lotep will also accredit payment providers and the permission holders' platform must ensure the ability to meet the requirements of the General Data Protection Law, ISO 27000:2018 and WLA – SCS:2020, with 24/7 monitoring to guarantee confidentiality, the integrity and availability of data.
The accredited person must initially declare and, at the time of the Proof of Concept (POC), prove (by presenting the relevant documentation) that they will provide two own or outsourced data processing centers, one of them in Brazil, with ISO9001 certification and TIER III and IV standards, or equivalent, to fulfill contractual responsibilities.
Within 12 months after obtaining permission to operate sports betting, the licensee must prove compliance with responsible gaming policies in accordance with the WLA, operating system in accordance with WLA = SCS:2020 and be associated with the World Lottery Association, Cibelae or equivalent institution. In addition, it must be associated with an internationally recognized entity that prevents match-fixing.
Lotep will provide an authenticity seal to be applied on the platforms of sports betting operators, on the equipment responsible for selling or registering bets.
The deadlines stipulated in Notice 003/2023 are as follows:
* Start of receiving qualification documents: November 20th
* Deadline for requesting clarification/challenge of the Notice: December 1st
* Deadline for Lotep to respond to requests for clarification/Challenge of the Notice: December 7th
* Deadline for sending qualification documentation for analysis in the first period: December 10th
* Start of the first analysis period: December 12th
* Maximum deadline for analyzing qualification documentation in the first period: December 21st
* Start of the next periods of analysis of proposals received: Annually (will be evaluated in the second half of the years following the publication of the Notice, up to the 5th year, for the qualification documentation sent by 06/30 of each year, limited to the end this accreditation).
Source: GMB
