A regulatory scheme for sports betting and online gambling in Brazil came into effect this month, five years after it was signed into law and nearly seven since it was originally passed, reports industry outlet Poker.org.
Just 14 companies have received full operating approval under the new regulatory framework, while 58 have secured provisional approval with expectation of full approval within 60 days – a far cry from the thousands of companies that operated in Brazil in the “Wild West” of recent years. The mix of Brazilian and international operators with full approval trends heavily toward sports betting – the result of other online gambling types being removed then reinserted into the bill during the lengthy process.
Such regulation is long overdue. Recent years have seen Brazil become the third-biggest market for sports betting in the world – operating largely without oversight. Late last year, the economy minister barred more than 2,000 betting companies from doing business in Brazil for having failed to provide all the required documents, and the president vowed to shut down the entire market if the new regulations fail.
[See more: Law to combat illicit gambling takes effect]
Brazil is also one of the largest countries in terms of online poker participation. While it surged in popularity in recent years, the fate of online poker under the new regulatory regime remains uncertain. Right now, no major online poker operators have full approval to operate in Brazil, with PokerStars Brazil (a provisional licensee) coming the closest.
In October, around the same time government officials were cracking down on the sector, PokerStars’ parent company, Flutter Entertainment, announced that PokerStars Brazil would become a poker-only operator, a transition completed in December. All other online gambling and sports betting is now under the Betfair brand name. The fates of other major global online poker operators remain unclear, with well-known names not appearing among the fully or temporarily approved licensees.
While trade publications have been calling for more specifics regarding online poker, government officials in Brazil are more focussed on curtailing the worst aspects of the sector, including fraud, money laundering and abusive advertisements. Gambling addiction is reportedly a growing issue in the country. The Central Bank of Brazil estimates around 20 billion reais (US$3.5 billion) is being wagered each month – a sum sufficient to reduce consumer spending in the country.
