Brazil’s sports betting regulation debated at CGS Recife

Júlia Moura September 6, 2024

Industry leaders gathered at CGS Brazil last week to explore the future of regulation in Brazil, emphasising the economic and social implications.

Plínio Lemos Jorge, President of the , participated in the panel titled “Economic and Social Impact of Lottery Regulation.” Lemos Jorge stressed the importance of collaboration between industry players to ensure that regulation leaves a positive legacy for Brazil. The panel, moderated by Lisandra Branco, CEO of Salis Capital, also featured Hazenclever Lopes, President of the State Lottery of Rio de Janeiro (Loterj).

Lemos Jorge acknowledged the disagreements over new legislation but highlighted that unity among bookmakers is essential to improving the sector’s public image, which has faced ongoing criticism. He underscored that regulation will help counter negative perceptions while bringing substantial benefits to Brazil, including a 12 percent contribution on gross gaming revenue (GGR) and a total tax burden exceeding 30 percent.

Furthermore, licensed betting operators will be required to pay a BRL 30 million fee to the Central Bank for a federal license, which must be renewed every five years. Jorge also voiced concerns over the lack of scientific basis in some recent studies on the sector, suggesting these analyses are premature given the current absence of formal regulation.

This debate takes on added significance in light of recent legal challenges in the sector. In July, Loterj secured a court ruling that blocked unauthorized betting sites in Rio de Janeiro. However, this decision inadvertently affected operations in other states, creating a wave of legal uncertainty. After intervention by the ANJL, the Federal Regional Court of the 1st Region (TRF-1) reversed the decision, leading Loterj to announce the withdrawal of the lawsuit at the end of August.

CGS Brazil focuses on the gaming and sports betting industry and brings industry leaders, regulators and shareholders together to discuss the gaming sector in Brazil and Latin America.