In the following article, the Altenar team explains why the company is in a strong position to help operators make the most of Brazil's newly regulated sports betting market.
Press release.- A proactive approach to regulatory compliance has positioned Altenar to help operators maximize the newly regulated sports betting market in Brazil.
The path to a regulated sports betting market in Brazil has been long and complex, marked by political, legal, and logistical challenges. Although the initial legislation to legalize fixed-odds betting was passed in 2018, the regulatory framework took years to finalize.
This delay can be attributed to several factors:
Political and Bureaucratic Obstacles
The Brazilian government faced significant political challenges in prioritizing the regulation of sports betting, especially in a context of broader economic and social issues. Additionally, the process of drafting and approving detailed regulations involved multiple actors, including the Ministry of Finance, the Secretariat of Awards and Betting (SPA), and other regulatory bodies, which slowed progress.
Debates on Taxation and Revenue Allocation
One of the most controversial issues was determining how to tax operators and allocate revenues. Discussions around the proposed 18 percent tax on gross gaming revenue (GGR) for operators and the 30 percent withholding on player winnings required extensive negotiation and consensus building.
Complexity of Compliance Requirements
The regulatory framework in Brazil seeks to create a safe and transparent market, meaning operators must meet strict compliance requirements. These include anti-money laundering (AML) measures, responsible gaming protocols, data protection under the General Data Protection Law (LGPD), and technical standards for platforms. The development of these rules took time to ensure they were effective and enforceable.
During this period of uncertainty, Altenar closely followed the evolution of the Brazilian sports betting market, anticipating the eventual implementation of a regulatory framework. As a leading provider of sports betting software, the company recognized the importance of being prepared to meet the country-specific regulatory compliance requirements.
As soon as the regulatory framework began to take shape, Altenar took immediate steps to meet its obligations, including:
As explained by the company, by staying ahead, Altenar has positioned itself as a trusted partner for operators looking to enter the Brazilian sports betting market. This proactive approach not only ensures regulatory compliance but also demonstrates a commitment to supporting the growth of a safe, transparent, and sustainable industry in Brazil.
Despite the delays, the Brazilian sports betting market is poised for significant growth. With a clear regulatory framework, operators have the opportunity to access one of the largest and most exciting sports markets in the world.
"Altenar's early preparation and ongoing commitment to regulatory compliance ensure that it is ready to help operators navigate this dynamic landscape and capitalize on its potential," the team assured.
