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On Thursday, 16 January, President Luiz Inácio Lula da Silva (PT) ratified the regulatory framework for the tax reform, which Congress had already approved. A key provision introduces the Selective Tax (Imposto Seletivo, IS) on physical and online gambling, including betting pools and fantasy sports. Known as the "sin tax", the IS is applied to products harmful to public health or the environment. Alongside gambling, it will also target alcoholic beverages, soft drinks, and tobacco, with the aim of discouraging consumption. However, the tax will not be levied immediately. It is scheduled to take effect in 2027, with the specific rate to be determined by future legislation. Bernard Appy, the extraordinary secretary for tax reform, indicated that the bill detailing the IS rates will be presented to Congress in the coming months, though no date has been set. The exact rate for gambling operators remains unclear. The gambling sector has strongly opposed the tax. In an interview with Yogonet in late 2024, Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), expressed concerns about its potential impact. He argued that, without the IS, the sector would already face one of the world’s highest tax burdens, over 35%, including the 12% on Gross Gaming Revenue (GGR). He also warned that higher taxes could drive bettors to illegal sites, undermining the goals of a regulated market.

The ongoing lawsuit concerning Loterj’s Accreditation Notice ("Edital de Credenciamento") No. 01/2023 is pivotal for the regulation of fixed-odds lottery and online gaming services in Brazil. The dispute centres on Loterj’s authority to permit operators to offer these services beyond the State of Rio de Janeiro. Key Developments: Loterj’s Role and the Accreditation Notice No. 01/2023: Loterj, the regulatory authority for lotteries in Rio de Janeiro, issued Accreditation Notice No. 01/2023, authorising operators to exploit fixed-odds lotteries and online gaming services not only in Rio de Janeiro but nationwide. Federal Government’s Lawsuit: The Union Attorney General’s Office (AGU) filed a lawsuit, arguing that the power to grant nationwide licences for such services belongs solely to the Federal Government, not state authorities like Loterj. Supreme Court Ruling (January 2, 2025): Justice André Mendonça ruled that Loterj can only authorise operators to offer these services within Rio de Janeiro. Loterj was given five days from being notified to comply with the decision. Possible Future Developments: The ruling is subject to a referendum by the full Supreme Court, expected on February 14 or 15, 2025. If upheld, it would set a precedent limiting other state and municipal lotteries from issuing nationwide licences. Loterj’s Appeal: Loterj has appealed the decision, but Justice Mendonça has maintained his stance, requiring compliance until the full Court rules. Potential Impact: If the ruling stands, it could severely limit Loterj’s ability to authorise nationwide operations and affect other state lotteries in Brazil. The decision may also restrict operators who were authorised by Loterj to operate outside Rio de Janeiro, compelling them to seek new licences. The outcome remains uncertain, with the full Court’s decision due in February 2025. However, the ruling so far suggests a move towards federal control over the regulation of lottery and gaming services, potentially reshaping the gaming landscape in Brazil.

Exciting News for the Gambling Industry in Brazil! 🇧🇷 The Brazilian market is fast becoming one of the most sought-after destinations for gambling operators around the world, thanks to its new regulatory framework that brings a structured and transparent approach to the industry. 🌍 As Brazil opens its doors to regulated gambling, the opportunities are immense – but navigating the local market requires the right expertise. That's where NetBlue comes in! We’re here to help you thrive in this dynamic landscape with tailored solutions designed to keep you running smoothly. ✔️ Company Setup: From gathering the necessary documentation to opening your business bank accounts, we manage all the essential tasks, ensuring a hassle-free and efficient start. ✔️ Regulatory Compliance: The Brazilian legal landscape can be intricate, but we ensure your operations comply with all local regulations, keeping you on the right side of the law. ✔️ Tax Efficiency: Our specialists guide you in optimising tax strategies, helping you expatriate funds while minimising liabilities to protect your bottom line. ✔️ Accounting & Payroll: Benefit from our comprehensive financial and administrative support, designed to keep your operations running smoothly and efficiently. ✔️ Strategic Outsourcing: Focus on growth while we take care of your daily operations, providing you with the flexibility to scale without the burden of day-to-day management. Get in contact

🌟 Build Your Dream Team in Brazil with Netblue & Jobs.Bet! Netblue, in partnership with Jobs.Bet, is here to simplify your hiring process and help you structure your team effectively. Together, we provide tailored recruitment solutions to connect your business with top talent across various industries. Whether you’re starting operations in Brazil or scaling your existing business, our combined expertise ensures you have the right professionals to drive success. 🔑 What we offer: Comprehensive talent acquisition strategies. Insights into the Brazilian job market and compliance with local labor laws. Efficient hiring processes for all levels and roles. Our goal is to help you build a strong, dedicated team that aligns with your company’s vision. With Netblue and Jobs.Bet by your side, hiring in Brazil becomes seamless and hassle-free. 💼 Let’s create your success story in Brazil. Contact us today! #Netblue #JobsBet #HiringInBrazil #BusinessGrowth

The Ministry of Finance is now entering the final phase of requirements for companies that registered by 20th August and applied for a licence to operate in Brazil's regulated betting market. According to Régis Dudena, the Secretary of Prizes and Betting, the list of authorised companies will be published in the second half of December in the Official Gazette, with operations beginning on 1st January 2025. The sector continues to grow rapidly, with approximately 170 additional companies requesting to join the list after the 20th August deadline. However, these companies will still need to undergo the full process to receive their authorisation. Dudena also discussed the issue of using Pix for instalment payments for bets, a topic that will be revisited by the Secretariat of Prizes and Betting. He also addressed a ruling by the Federal Supreme Court (STF), which prohibited the use of Bolsa Família funds for betting. Despite this, the market was strengthened by the STF's decision to uphold the existing legislation, ensuring legal stability for the sector. Lastly, the Secretary emphasised that the Secretariat of Prizes and Betting will continue to require responsibility from the Central Bank and health sectors in monitoring and supporting individuals affected by gambling addiction.

This notice from the Brazilian Ministry of Justice and Public Security outlines new regulations on online sports betting advertising. The key measures you must implement are as follows: Key Requirements: 1. **Suspension of all advertising offering rewards or bonuses**:   - Immediately suspend any promotions, giveaways, or incentives encouraging bets. 2. **Discontinuation of advertising targeting children and adolescents**:   - Ensure all online sports betting ads are not directed at minors or vulnerable groups. 3. **Submission of a transparency report**:   - Within **20 days** of receiving this notice (by **9 December 2024**), submit a report detailing the steps taken to comply with the advertising restrictions. 4. **Penalties for non-compliance**:   - Failure to comply will result in a daily fine of **R$50,000** until full compliance is achieved. Rationale for the Changes: The Brazilian government has introduced these measures to: - **Prevent excessive debt**: To curb financial harm from excessive gambling. - **Protect vulnerable individuals**: To reduce gambling exposure among children and adolescents. Immediate Actions: 1. **Review Advertising Campaigns**:   - Conduct an immediate review of all active campaigns. Suspend any offering rewards or bonuses for betting. 2. **Ensure Proper Targeting**:   - Adjust any campaigns that target children or adolescents. Pause or re-target any that reach these groups. 3. **Prepare the Transparency Report**:   - Document the actions taken to comply with the new rules, including:    - Suspension of reward-based campaigns.    - Adjustments to targeting.    - Other compliance measures.   Submit the report by **9 December 2024**. 4. **Monitor for Updates**:   - Stay informed of any further guidance from the Ministry of Justice and Public Security. Recommendations for Compliance: - **Audit Campaigns**: Conduct a quick audit of all active campaigns to identify any non-compliant content. - **Internal Coordination**: Ensure marketing, legal, and compliance teams are aligned on the necessary changes. - **External Agencies**: Notify any third-party agencies of the new requirements and ensure they update campaigns accordingly. Given the significant financial penalties, swift action is essential to ensure compliance.

The regulation of the online betting sector in Brazil marks a significant step towards creating a more secure and transparent environment for both bettors and operators. With its implementation set for January 1st, the government aims to establish a landscape where integrity and responsible gaming prevail. Let's delve into the key aspects of this regulation and its anticipated impact on the ecosystem. Impacts of Regulation on the Market Transparency and Security: The regulation will introduce clear rules for the operation of online betting, ensuring that all activities are conducted fairly and transparently. This not only protects consumers but also ensures that companies operate within legal boundaries. Combatting Illegal Practices: With a regulatory framework in place, it will be easier to combat and suppress illegal and unethical practices. Authorities will be better equipped to identify and address non-compliant activities, fostering a cleaner and safer market. Innovation and Technology: Brazil stands out by adopting technologies such as facial recognition to ensure the integrity of gaming. Additionally, tools for self-exclusion and personal limits on time and losses are being implemented, strengthening the commitment to responsible gaming. Identification and Legitimacy: The introduction of the .bet.br domain for authorised betting sites will facilitate the identification of legitimate operations, helping consumers avoid illegal sites. Challenges and Opportunities With regulation comes both challenges and opportunities. Companies will need to swiftly adapt to the new rules, developing effective compliance systems. However, this also paves the way for a more trustworthy market, which can attract investment and enhance consumer confidence. The implementation of online betting regulation is a milestone in Brazil's history, showcasing its ability to lead with innovation and responsibility. It is expected that with clear rules and a continuous commitment to ethics and integrity, the sector can flourish, benefiting the entire Brazilian society.

Why Betting Companies in Brazil Should Invest in Directors and Officers Liability Insurance (D&O) With the regulation of the betting market anticipated for January 2025, gaming and betting companies in Brazil will face new legal and operational requirements. Previously unregulated, the sector will now need to adapt, making Directors and Officers (D&O) liability insurance essential for protecting executives and the company. What is D&O Insurance and Why is it Essential? D&O insurance protects directors, board members, and senior executives against claims arising from their official actions. This coverage safeguards their personal assets from third-party actions alleging mismanagement or detrimental decisions. Facing Regulatory Complexity The betting market will be closely monitored by regulatory bodies, requiring compliance with strict norms. This increases the risk of investigations, with non-compliance potentially leading to fines. D&O insurance provides a financial safety net, covering legal costs and settlements, allowing leaders to focus on strategic decisions. Protection of Executives' Assets Potential personal financial liability can deter qualified executives. D&O insurance offers protection against personal losses, essential for attracting talent. It reassures executives they won't face personal financial consequences from lawsuits, making their roles more secure and appealing. Defence Against Shareholder and Stakeholder Lawsuits Regulation increases exposure to lawsuits from shareholders and clients, who may allege mismanagement. D&O insurance covers defence costs and judgments, protecting the company's finances and ensuring resources remain for innovation and growth. Strategic Risk Management Risk management is vital in the regulated environment. D&O insurance is key to a comprehensive strategy, protecting leaders from litigation. It stabilises management, allowing executives to take calculated risks, fostering company growth and shareholder confidence. Corporate Reputation and Stability Trust becomes fundamental with regulation. Robust risk management, like D&O insurance, shows commitment to transparency, enhancing reputation and attractiveness to investors and clients. Conclusion From January 2025, D&O insurance will be a strategic tool for betting companies in Brazil. It mitigates financial risks, attracts talent, and helps navigate regulatory environments safely. This investment ensures a stable foundation for future operations, protecting against costly lawsuits and supporting long-term sustainability. If you need further adjustments or additional information, feel free to ask!

Cyber Liability: In the event of an incident where an intruder causes data loss within Bet's systems, the insurance covers all costs associated with server replacement, war room setup, payment of ransom amounts, forensic costs, etc. The most important aspect of this product is that we offer a tool that assists our clients in mapping vulnerabilities, remediating them, and transferring risks. If you need further assistance or additional details, feel free to ask!

Directors and Officers (D&O) insurance is a crucial component of risk management for businesses, offering protection to individuals in leadership positions. This type of insurance is designed to safeguard the personal assets of directors and officers in the event they are sued for alleged wrongful acts while managing a company. The importance of having D&O insurance cannot be overstated, as it plays a vital role in attracting and retaining talented leaders, protecting the financial stability of the company, and ensuring sound corporate governance. Firstly, D&O insurance is essential for attracting and retaining skilled executives and board members. Individuals in these positions often face significant personal liabilities due to the decisions they make on behalf of the company. Without the protection of D&O insurance, potential leaders might be hesitant to accept roles that expose them to personal financial risk. By providing this coverage, companies can reassure their leaders that they will be protected against personal losses arising from lawsuits related to their corporate duties. Secondly, D&O insurance helps protect the financial stability of a company. Legal claims against directors and officers can result in substantial financial losses, both in terms of defense costs and potential settlements or judgments. Without insurance, these costs could severely impact a company’s finances, potentially leading to bankruptcy. D&O insurance mitigates this risk by covering the costs associated with defending against such claims, thereby preserving the company's financial health. Lastly, D&O insurance promotes sound corporate governance. It encourages directors and officers to make bold and strategic decisions without the constant fear of personal liability. This assurance allows them to focus on long-term goals and innovative strategies, ultimately benefiting the company and its stakeholders. In summary, D&O insurance is an indispensable tool for protecting both individual leaders and the organisations they serve, fostering a stable and progressive business environment. Get in contact to know more.