Brazil’s Ministry of Economy is finalising a draft regulatory decree for online and land-based sports betting, which would see the country set no limit on the number of licences that could be issued.

The guidelines are expected to be open for public comment later this month, Neil Montgomery, managing partner at Montgomery & Associados told SBC.

Under the proposed regulations, operators will be required to pay a one-time licence fee of R$3m (£600,000) for a nine-year period, with companies paying an annual tax rate of 1 per cent on turnover.

Monthly licensing fees will differ depending on the nature of the operation. Land-based operators will pay R$20,000 (£4,000) per month; online operators will pay R$30,000 (£6,000) per month and omni-channel operators will pay R$45,000 (£9,000) per month.

The regime also establishes that operators must maintain a financial reserve of R$6 million (£1,200,000) to serve as a guarantee of payment to customers.

“The Ministry of Economy received more than 1,800 suggestions, both from Brazilian and foreign entities and individuals, on how to regulate sports betting. There was an overwhelming response to the public consultation opened in July,” commented Montgomery.

In comments reported by Brazil’s O Globo newspaper, Alexandre Manoel Angelo da Silva, from the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP), which comes under the Ministry of Economy, said: “We consider this to be the most adequate licensing regime and regulatory framework as it gives flexibility and allows various companies to operate in the market.”

In 2019, the office of outgoing President Michel Temer signed the approval of MP-846 – a bill which paved the way for sports betting to go live in the country.