Sports betting in Brazil suffers major blow after Bolsonaro fails to sign legislation

The regulation of Brazil’s online sports betting market has been thrown into limbo after outgoing President Jair Bolsonaro failed to green light the legislation.

Law No. 13,756/2018, which centred around the regulations for fixed-odds sports betting, had been awaiting presidential approval after government official fleshed out the regulation.

The decree had a deadline of 12 December, with many in the sector expecting Bolsonaro to rubber stamp the regulation before leaving office at the end of December.

However, the far-right incumbent has dashed hopes of an imminent regulated sports betting market, in what could be viewed as a slight against incoming President Lula.

A regulated sports betting market might potentially return at least R$6bn (£917m) a year in taxes for the government.

The regulations, published by the Secretariat of Evaluation, Planning, Energy and Lottery in May, would have seen a $4.4m licence fee for operators introduced.

The licences would have been valid for five years, with no limit set on the number of licensees allowed in the market.

Many Latam igaming experts expected Bolsonaro to issue the presidential decree for sports betting regulation by the 12 December deadline.

Neil Montgomery, managing partner at Montgomery & Associados, previously told EGR: “With Bolsonaro on his way out on 31 December, there is no reason for him not to issue the presidential decree regulating Law No. 13,756/2018 within the legal deadline of 12 December, especially since its text seems to be ready. It could be one of his legacies.”

Despite the hopes and expectations, sports betting regulation looks to be back to square one in Brazil.

Lula has previously indicated his support for the sector, and with his left-wing policies needing funding from the public purse, regulation may leapfrog to the fore of his early tenure as President.