Brazil’s new regulatory framework would prohibit gambling incentives, such as bonuses and free bets. The new rule is outlined in the new guidelines, published by Brazil’s Ministry of Finance through its Secretariat of Prizes and Betting (SPA).
In addition to prohibiting certain payment methods, such as cryptocurrencies, cash and credit cards, the new framework makes it clear that licensed operators will not be allowed to use incentives to channel customers toward their products.
As per the new law, gambling operators are forbidden from providing any form of advantage or bonus, even if merely for promotion or advertising.
This prohibition comes on top of a number of other regulations, under which operators must only take money from registered customers and should pay out winnings within 120 minutes, counted from the conclusion of a sporting event or game.
Bonuses, which are a regular way for operators to attract consumers, have been prohibited amid concerns about the integrity of the market and potential spike in problem gambling. It is precisely because of these concerns that Brazil also opted to prohibit many payment options, except for certain electronic transfers.
Brazil Prepares to Launch Regulated Betting
The SPA was created two months ago and aligned with Brazil’s ambition to launch a profitable yet safe betting market. According to an earlier announcement, the country hopes to finalize its regulatory framework by July this year. April, for example, is the deadline for the first of the four stages of the policymaking process.
In any case, Brazil’s wagering market is expected to sport a variety of strict rules intended to shield local consumers from harm and protect the integrity of the sector.
For example, the Latin American country plans to mirror the ad restrictions in other markets and ban celebrities from appearing in gambling ads. Proponents of this measure argued that this would prevent younger and more vulnerable audiences from being bombarded with content that incentivizes them to gamble.
Under an earlier proposal, all operators that wish to operate legally would need to launch a .bet domain instead of the standard .br.
Leading global operators have now set their sights on Brazil, carefully following every regulatory move. This is hardly surprising considering that analysts expect the country’s wagering sector to generate billions of dollars in revenue.
Speaking of revenue and regulation, a recent Vixio report highlighted the potential of the legalization of online casino gaming, saying that the sector could generate up to $5 billion in revenue.
