The SPA has also outlined its mechanism for calculating regulatory fees.

Brazil.- The new Brazilian gambling regulator has issued new rules related to advertising for the country’s newly regulated online gambling market. The SPA says gambling ads in Brazil must no longer use national symbols in advertising campaigns or marketing materials. This includes a ban on using the real currency symbol or images of Brazilian banknotes and coins.

The regulator said the aim was to “prevent misleading claims suggesting that prizes will be paid in cash, which is prohibited by law.” It said that non-compliance with the order could result in fines, the suspension of marketing campaigns or a revocation of authorisation to run future promotional campaigns. It also reminded operators that promotions that involve prize giveaways must receive the Ministry of Finance’s prior approval.

Brazil online gambling supervision fees

Meanwhile, the SPA has provided details about the calculation of its administration fees for the regulated online gambling market.

The regulator has clarified that its monthly supervision fee, which helps fund its operation will be calculated on gross gaming revenue after deductions, including player prizes. It must be paid by the 10th of the month after prize distribution via the PagTesouro digital payment processing system managed by the National Treasury. Payments can be made via PIX, credit card or a GRU bank slip.

There will be eight levels, starting with a free of BRL 54,419.56 (€9,000) for operators with revenue of BRL 30m (€5m). The fee will rise to BRL 1,944,000 (€324,000) on revenue of BRL 660,960,000 or more (€110m).

The new normative instructions follow the launch of regulated online gambling in Brazil on January 1 following the issuance of 71 licences. Last week, the SPA clarified the mechanism for calculating tax on online gambling in Brazil. The SPA states that GGR should be calculated as: total revenue from bets – (prizes paid to winners + income tax on prizes).

Licensed operators must pay a 12 per cent tax on GGR, and the calculation will also be used for tax collection for COFINS, PIS and ISS. COFINS, a federal social assistance contribution is charged monthly at 7.6 per cent of revenue. PIS, the contribution to the Social Integration Program, is charged monthly at 1.65 per cent of GGR, and ISS, the monthly municipal service tax, once implemented, will vary between 2 and 5 per cent depending on the municipality in question.