On October 27, Ordinance 1330/2023 was published in the DOU, which established the general conditions for the operation of sports betting in Brazil. It pointed out that those interested in applying for a license must submit a prior expression of interest within 30 days. The document determined responsible gaming rules, advertising and the requirement for the company to be established in Brazil.
Although the deadline has expired, Finance is still receiving forms from interested companies. It is important to remember that the prior expression of interest was not binding; in other words, all companies still have time to obtain their license if they comply with all the requirements imposed by the Brazilian government.
Games Magazine Brasil was able to determine that 133 companies have already completed the form required by the Ministry to operate sports betting in the country. Of the total, 52 expressions of interest were delivered to Fiance in the days that followed after the Ordinance was issued until approval of Senator Angelo Coronel's report in the Senate's Economic Affairs Committee. After approval by the CAE, another 81 were presented, reaching 133 so far.
If it is considered that the new law establishes that each company must pay R$ 30 million (US$ 6.15m) for a license to operate for 5 years, these 133 expressions of interest would represent a total of R$3.99 billion (US$ 815m) in revenue from grants alone for the federal government.
Although there is still no way to apply for a license considering that the bill that regulates sports betting in Brazil has not yet been approved, the number is impressive and demonstrates the interest that the Brazilian market arouses among operators. By approving the project, it is expected that many more companies, already sure of the bill approval format, will speak out for licenses.
During his demonstration in the Plenary, Senator Angelo Coronel (PSD-BA) reinforced the importance of approving the project in the way it was reported to guarantee the collection of taxes to reduce the fiscal deficit.
“The Brazilian market, I have no doubt that it will be the largest market in the world, surpassing the United Kingdom, the United States and other places, because the Brazilian people like, in essence, in their culture, to play, as is the case with Jogo do Bicho, the only country that has it is Brazil. So, the country is even the inventor of a game modality. Imagine the desire it has!” said Coronel.
How to complete the Expression of Interest?
The Ordinance contains the form to be completed by interested parties, who must also submit a social contract, statute or commitment to establish a Special Purpose Company – SPE, or in the case of a foreign company, a commitment to establish a company in Brazil, written in Portuguese language or accompanied by a sworn translation.
The presentation of a prior expression of interest does not constitute prior authorization to operate sports betting, nor does it bind the company, which must comply, in a timely manner, with all the requirements contained in Law No. 13,756/2018, Ordinance 1330 and other current legal and regulatory standards.
The opening date of the procedure for submitting a request for authorization to operate sports betting in Brazil will be set out in specific regulations, to be issued by the Ministry of Finance.
Companies that respond to the Expression of Interest will have priority in analyzing their requests for authorization to operate sports betting when the deadline for submitting the application opens.
In the form, the company must indicate, in addition to its complete qualifications, the number of brands it intends to operate as well as the types of operation, whether sports betting, online gaming or both. In the form, the company must indicate whether it already has licenses in other countries, and must list them if it already operates.
The non-binding prior expressions of interest were sent to the General Coordination of Lotteries of the Ministry of Finance, by email [email protected].
Source: GMB
