Brazil Sets Deadline for Unlicensed Operators Suspension
A recent announcement in Brazil stated that only operators who are currently active in the country and have applied for a license will be allowed to continue operating from October onwards. This new ordinance, Normative Ordinance No 1,475, requires active operators to submit their license applications by 11:59 p.m. on Sep. 30 to avoid having their sites blocked. Additionally, operators must inform the Secretariat of Prizes and Bets (SPA) about the brands and domains they will operate during the transitional period between Oct. 1 and Dec. 31.
Legal experts Eduardo Carvalhaes and Karen Coutinho from the Brazilian law firm Lefosse believe that this measure will address concerns regarding illegal operators in Brazil’s legal betting market, which is scheduled to launch on Jan. 1, 2025. While the Brazilian Institute of Responsible Gaming (IBJR) welcomed this move, there are some concerns about its legality. Paulo Horn, the President of the Order of Attorneys of Brazil in Rio de Janeiro, argues that the ordinance is unconstitutional and urges the Ministry of Finance to reconsider it.
Colombia’s Gambling Industry Faces VAT Concerns
The Colombian Association of Gaming Operators (Asojuegos) has expressed apprehension over a proposed new value-added tax (VAT) on online gambling in Colombia. Reports suggest that the government is considering implementing a 19 percent VAT on online operators, a move that could potentially lead to increased black-market activity in the country. Currently, operators in Colombia are taxed based on their return-to-player (RTP) rate, with rates ranging from 15 percent to 17 percent of gross gaming revenue (GGR). Asojuegos has warned that the additional VAT could have damaging effects on the Colombian online gambling sector, potentially reducing the return to players and driving them towards illegal or international platforms.
Brazilian Federation of Banks Calls for Credit Card Ban
The President of the Brazilian Federation of Banks (Febraban), Isaac Sidney, is advocating for an expedited ban on using credit cards for betting in Brazil. Although a ban on various payment methods, including credit cards, was introduced in April, it is currently slated to take effect only when the legal market launches in January. Sidney emphasizes the importance of implementing this ban sooner to safeguard players and prevent financial issues that could arise from using credit cards for gambling.
Playtech Resolves Dispute with Caliplay through New Agreement
Playtech has reportedly reached a resolution with Mexico-facing operator Caliente regarding their Caliplay joint venture. The two companies had been embroiled in a dispute over unpaid fees, with uncertainties surrounding Caliplay’s option to redeem additional service fees from its Playtech deal. Despite initial disagreements, Playtech and Caliente have now agreed on a revised strategic agreement, leading to a standstill of legal proceedings. Caliplay has resumed payment of disputed fees to Playtech, and Playtech now holds a 30.8 percent equity interest in Caliente Interactive’s new U.S.-incorporated holding company.
ANJL Refutes Claims Regarding Betting’s Impact on Consumer Behavior in Brazil
The National Association of Games and Lotteries (ANJL) in Brazil issued an open letter responding to claims that bettors are irresponsibly spending their money on gambling. A study earlier this year suggested that a significant portion of bettors had reduced spending on essential items like clothing and healthcare to fund their gambling habits. However, the ANJL cited data from the Brazilian Institute of Geography and Statistics (IBGE) showing an increase in household consumption expenditure, refuting allegations that the betting industry is negatively impacting consumer behavior in Brazil.
