Brazil’s Betting Industry Takes a Major Step Forward with Law 14,790/2023
In a significant move, Brazil has started regulating its sports betting industry with Law 14,790/2023, sanctioned at the eleventh hour of 2023. This groundbreaking law sets the framework for the operation of online sports betting sites in the country, including regulations on player age limits, taxation, and intellectual property rights related to athletes and sports organizations. The Ministry of Finance is still defining the requirements and guidelines for the authorization and operation of the betting companies, including policies and procedures for servicing bettors, prevention of money laundering, terrorist financing, proliferation of weapons of mass destruction, corruption and other crimes; and especially for responsible gaming, prevention of pathological gambling disorders, bet integrity and prevention of manipulation of results.
The regulation of gambling, casinos, bingo and other games of chance is underway – Bill 2234/2022 is currently under heated discussions in Brazilian Senate, and has recently been approved by a slim 14-12 vote by the Senate’s Constitution and Justice Committee.
Recent Developments: 100+ Authorization Requests Filed
As of August 2024, the Ministry of Finance received 113 authorization requests from 108 sports betting companies that aim to operate legally in Brazil starting in January 2025. These companies must pay R$ 30 million for a five-year license to operate in the country with up to three trademarks. Strict regulations are also in place, requiring companies to be headquartered in Brazil and ensuring that they comply with specific local ownership requirements. Companies that fail to secure proper authorization by 2025 will face steep penalties, including fines of up to R$ 2 billion per infraction.
Opportunities and Challenges for Trademark Protection
As the betting industry becomes more regulated, questions about the protection of intellectual property are becoming more pressing. Under Brazilian law, only trademarks for lawful activities can be registered, creating challenges for sports betting sites. Although companies can operate legally, their ability to fully protect their trademarks remains limited. This is particularly concerning for international companies that have registered their trademarks in other countries but face hurdles in Brazil.
What’s Next for the Betting Industry in Brazil?
The Law 14,790/2023 represents a major step forward for Brazil’s betting industry, bringing clarity and structure to a previously gray area. However, with further regulations and pending legislation on the horizon, such as Bill 2234/2022, the future of gambling regulation in Brazil is still evolving. Companies need to stay vigilant to ensure their trademarks and core business assets are adequately protected in this dynamic market.
Stay Ahead of the Game
As the legal landscape around sports betting evolves, it’s crucial for businesses to stay informed and take proactive steps to safeguard their brands. For a detailed analysis on the topic, check out the article written by Isadora Lima on the trademark protection of sports betting sites still under Provisional Measure 1.182/2023, which started the discussions and gave rise to Law 14,790/2023: Read the full article: https://gruenbaum.com.br/en/provisional-measure-1-182-2023-and-the-trademark-protection-of-sports-betting-sites-bets-in-brazil/