The Ministry of Finance in Brazil is laying groundwork for a distinct digital extension dedicated to sports betting and online casinos websites.
The ministry plans to create “.bet” domain, designated exclusively for companies operating within the sector, BNL Data and GMB reported. This domain extension is poised to precede the traditional “.br” in website URLs. Preliminary discussions have already taken place with NIC.br (Ponto BR Information and Coordination Center), the entity responsible for managing domain registrations in the country.
Should the initiative proceed, exclusive utilization of the “.bet” extension would be reserved for authorized bookmakers. The primary aim is to simplify the identification process for law-abiding platforms while impeding companies in non-compliant situations from operating freely. The designated domain can aid users in discerning authorized companies operating in Brazil, mitigating the risk of bettors falling victim to scams or fraud. Furthermore, it can expedite the inspection and monitoring of potential irregularities within the industry.
Defining the entity responsible for managing the domain, including the authorization of websites and the identification of addresses belonging to legitimate companies, remains essential. Discussions among stakeholders suggest that the process is anticipated to encounter minimal obstacles, though there are differing opinions within the Finance sector regarding the use of “bets” versus “bet.”
Furthermore, the management of online betting establishments operating in Brazil and the practical implementation of sector supervision have yet to be determined. Current expectations suggest that the Ministry of Finance, along with the newly established Secretariat of Prizes and Bets, will assume a significant portion of these responsibilities, centralizing their functions.
Simultaneously, collaborative efforts with other ministries such as Justice, Sports, and Health, as well as agencies like the Federal Revenue for tax collection, are anticipated to be established to create efficient workflows, the report said.
As reported by Folha de S.Paulo in its ‘Bets no Brasil’ series, Brazilians contributed more than R$50 billion (US$10 billion) to the betting industry in 2023. A Datafolha survey revealed that 15% of the Brazilian populace has engaged in or expressed interest in betting activities, predominantly among the youth demographic.
The lucrative market potential has attracted attention from global conglomerates eyeing opportunities in Brazil. Companies such as Globo, Kwai, Caixa Econômica, and even casino operators from Las Vegas have expressed interest in operating within the Brazilian market, notwithstanding the ongoing regulatory process.
Under the proposed online sports betting legislation, websites would be subject to a 12% tax on revenue, excluding prize payouts. Additionally, bettors would be liable to pay a 15% tax on winnings.
The legislation categorizes “real sports-themed” events and “virtual online gaming” events as fixed-rate bets, thereby encompassing esports and virtual gaming environments within the regulatory framework.
Original article: https://www.yogonet.com/international/noticias/2024/04/02/71523-brazil-considers-34bet-34-domain-for-sports-betting-online-casino-websites
