Brazil to require online sports betting firms to be based in the country

[The Buzz]

Brazil will require sports betting companies operating in the country to also be headquartered in Brazil, in addition to creating oversight mechanisms to curb fraud and manipulation of match results, its finance ministry said last week.

From Reuters:

A law passed in 2018 allowed betting companies to operate in the country and they have surged in popularity since then, but the government says loose regulation has allowed the business to grow untaxed and lawless.

"The regulation will require that betting companies are based in Brazil," the ministry said in a statement, as most are based abroad, as well as "improving the supervision, collection and dialogue with the agents that operate in the sector."

It was unclear if opening a locally-headquartered subsidiary would be enough for a foreign-based firm to meet the requirement.

The moves, which include taxing the firms, are part of an effort announced by Finance Minister Fernando Haddad last week to boost fiscal revenue to offset increased social spending.

Read more here: https://www.reuters.com/world/americ...ry-2023-03-07/

[Springbok]

Definitely keeping an eye on this as it's an exciting new GEO with a lot of potential.

[Pokerface]

Certainly will be interesting to follow. At first glance have a "What the ...." moment but does actually seem to make sense for their market. Allowing a locally-headquartered subsidy would also make sense.

[betcanada365]

Yeh as long as the allow for subsidiaries its ok.

Do you think they will move to have affiliates registered / licenced?

[Egor_RexAffiliates]

I don't think it will be a big problem to make a legal address in Brazil for large companies