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For lack of a better word, Asia is huge. It is the world’s largest, most populous continent, regulatory environment, and home to some of the world’s most vibrant and diverse Asian economies and cultures. However, it also represents one of the most significant opportunities for doing business and expansion that can be found on the planet. Let’s focus on five specific reasons why globally-minded companies should look first to Asian markets when considering doing business in Asia. Asian markets together makeup the second-largest consumer market in the world   While it may take some time for any country to surpass the mammoth consumer economy found in the United States, combining the pre-COVID markets in just three countries – China, Japan, and South Korea – the total of over nine trillion USD in spending well exceeds the eight trillion of EU member states. Moreover, the combined GDP of the world’s second-and third-largest economies of China and Japan is rapidly approaching once unthinkable US levels.More impressive is a recent report by McKinsey suggesting that Asia may very well be responsible for 40% of the global economy and consumption and over 50% of global GDP by 2040. And the trend looks to become more pronounced in the immediate future, with China soon becoming the most vociferous consumer of luxury goods globally.China and its regional rivals Japan and South Korea already boast a combined luxury goods market value 25% greater than what US consumers invest in the same premium goods.  It is a business partner to most western economies as it imports all kinds of crucial products vital to them  Consumer spending and luxury items are certainly not the whole story, as Asia currently features four of the top 10 global oil consumers – not surprisingly China, Japan, and South Korea again – with China and Japan in the top four globally. Singling out Japan as one particularly striking example, the world’s fourth-largest exporter also imports nearly two-thirds of a trillion USD worth of commodities and goods each year: everything from copper ore to integrated circuits to advanced weaponry. Japan is an unbelievably lucrative business partner for the US defense industry, investing nearly a billion USD just last year in drones, missiles, fighter aircraft, and lots of other hardware too sensitive to mention here. But for the manufacturers, the partnership is much more than just a sale; it is an investment, with companies like Boeing and Lockheed Martin training their Japanese counterparts to produce domestic variants of the latest and new technology. A case in point is the next-gen F-35fighter plane, for which the final assembly is performed in Nagoya, Japan.  It has more intra-regional trade than anywhere else, with more regional trade partnerships   When the Regional Comprehensive Economic Partnership Agreement (RCEP) comes into effect in January 2022, this alliance amongst the Association of Southeast Asian Nations (ASEAN) and six other regional countries will immediately become the most significant trade partnership in the world – far out-sizing similar agreements in North America and the EU – with member states representing 30% of global GDP.The agreement will help streamline the movement of goods and services across member state borders and also make it simpler for companies to expand their footprint across multiple locations. And there is the added advantage of having the financial and commercial hubs of Hong Kong, Shanghai, Singapore, Seoul, and Tokyo all within a one-hour time difference of each other. But RCEP is simply the largest and most visible trade agreement in a region that already sees quite a bit of productivity through APEC, ASEAN, ASEAN Plus Three, and of course the Trans-Pacific Partnership.Asian countries have a vast pool of talent across sectors    It’s only natural that the world’s most highly populated region will have a massive potential labour pool. Highly skilled local workers have for years been imported from countries like China and India by US tech giants, however as the middle class grows across many parts of Asia, the amount of money that can be invested in education has also grown.   Continuously developing Asian economies like Indonesia and the Philippines (and to a lesser extent Myanmar and Vietnam where there are large populations and significant potential for economic progress) are notable examples. Honing their skills in the more advanced economies of their neighbors, and not content to wait for organic career growth, scores of skilled local workers are now showing interest and looking to test the waters of non-traditional locations outside of Silicon Valley.   Medical workers represent another significant pool of local skilled labour in Southeast Asian countries such as Thailand, Indonesia, and the Philippines. Care workers can be educated and trained in their home countries at a fraction of the cost of receiving similar experiences in the west, are proficient in English and other languages, and are ready to meet the growing demand for labour in aging societies like Japan and in regions such as western Europe.   It has the world’s fastest-growing technology hubs and busiest shipping hubs   Many cities across Asia are considered to be amongst the most prominent global hubs for new technologies. Singapore, however, is the location that has been garnering the most attention recently, ranked by KPMG as the leading tech innovation hub in the world, and home to 80% of the top global tech firms. This “Little Silicon Valley” may one day no longer need to have the “little” preceding its name. Its prominence is in no small part due to a government that incentivises tech firms and pushes them to innovate locally rather than simply peddling an existing product.Sea freight is also one of the growing industries in the region, with the eight busiest global ports located in Asia. For total container volume, Singapore lost the top rank to Shanghai in 2019 and is now in the second spot, followed by Shenzhen, Ningbo, Busan, Hong Kong, Guangzhou, and Qingdao. Outside of Asia, only the port of Dubai can be considered a candidate for this elite group.  Final thoughts  But regardless of all of these advantages, businesses that want to expand into Asia need to be located in Asia. Understanding how to establish a successful and sustainable Asia presence is the key to making an investment worthwhile, and the companies that have made a real, long-term difference all have a significant operational capacity in the region.There may soon come a day when opening first in Asia is a prerequisite to doing business internationally. It may already be here!Should you require more information or need help with doing business in Asia, don’t hesitate and send us an e-mail. We can help you Incorporate, Move and Fund your business in Asia!

Greece is a very famous destination, not only as a magnificent location for vacations but also for the eminent investment and business opportunities, available and approachable both for European investors and entrepreneurs but also for investors and entrepreneurs who are third-country nationals.  Nowadays constantly increasing numbers of other EU citizens, non-EU nationals, retirees, digital nomads, and also investors, entrepreneurs, and company groups choose to move permanently to Greece due to the many advantages and amenities that Greece provides.  Especially for the non-EU citizens, who face specific problems and barriers with the immigration restrictions of their access to the European Union countries, there is a very good solution that provides work and residence permits for the executives, administrators (directors), or board members of a branch of a foreign limited liability company located in Greece or of a Greek subsidiary company.  Below we provide you with some brief information about that solution:  General information about the Greek Residence Permit Executives, administrators and board members employed at Greek branches of foreign companies have a relatively easy way of obtaining a permanent residence permit.  Who can apply for the residence permits?  members of boards of directors,  shareholders,  managers,  legal representatives and  senior executives of Greek corporate entities (with more than 25 employees), as well as the Greek subsidiaries and branches of foreign companies.Are family members included?  The aforementioned persons may be accompanied by their family members, to whom a permit for family reunification may be granted. Conditions for the residence permit?  The branch or the Greek subsidiary company must be legally exercising a business activity in Greece.   A foreign entity that intends to set up the branch or the Greek subsidiary company must be established abroad as a Limited Liability Company (LLC or LTD or SA or Joint Stock Company).  The Greek subsidiary company must be a limited company (either Private Limited Companies/ IKE, LTD/ EPE, or SA/ AE) that is owned by the foreign entity with at least 70%.  The foreign entity (mother company) must have sufficient funds to support the investment in Greece (50 – 100K is a sufficient amount of money that the entrepreneur wishes to invest in Greece).  The members of boards of directors, shareholders, managers, legal representatives, and senior executives of subsidiaries and branches of foreign companies will stay and work in Greece for at least 186 days annually in order to help the Greek branch or the Greek subsidiary company to operate the business activities in Greece.  Duration of the residence permit   This type of residence permit is issued for two years or for a period equal to the expected duration of the applicant’s stay in Greece and is renewed every three years.Benefits of the Greek Residence Permit 1. Access to labour market   The solution provides both work and residence permits to both EU citizens and third-country nationals.2. A prominent European gateway  Greece stands at the crossroads of Europe, Asia, and Africa and offers excellent opportunities for internal-continental connection. Greece is highly developed in shipping and logistics infrastructure and offers a platform through which business people are able to venture and get access into nearby markets around the Balkans, the Black Sea, and the rest of Eastern Europe.Through the Greek residence permit, foreign investors, entrepreneurs, and international groups of companies can enter the prosperous European market and the opportunities that lie within and also open a new market in the most efficient way.  3. Access to the Schengen Area for third-country nationals Greece is a member of the Schengen Area, an area comprising 26 European states that have officially abolished passports and other types of border control.  The travel privileges that you get if you are a holder of the residence permit include:  You can travel freely within the Schengen zone without the customs checks.  You can travel from your own country of origin to any Schengen zone.  Through the residency program, the executives, administrators, or board members of the Greek branch or the Greek subsidiary will be able to have access to the Schengen area with their residence permits and to travel without problems.  4. Prosperous business and investment opportunities   In Greece, a new, advanced and emerging economy is in the making. In parallel, investment opportunities are abundant and attractive in a wide variety of sectors. Greece’s massive reform efforts are opening new investment frontiers that reward both first movers and established players, giving investment (tax and subsidies) and immigration incentives.The next decade is set to see sustained growth in tourism, ICT, energy, pharmaceutical and environmental sciences, food, real estate, beverage and agriculture, logistics, and life sciences. 5. Access to highly qualified and English-speaking personnel   The potential entrepreneur is able to recruit and hire highly educated, trained, and qualified personnel and English is the second language that a majority of the Greeks speak.  6. Greece offers a modern and high-quality lifestyle  Greece is one of the sunniest countries in Europe and offers a modern and high-quality lifestyle. In Greece the cost of living is lower compared to the rest of Europe and every resident can enjoy a sunny life, combined with unparalleled beauty and diversity in landscape and nutrition, and also plenty of options for recreation.Greeks are friendly and hospitable and both EU and non-EU nationals living in Greece can enjoy a relaxed lifestyle, including outdoor activities, modern culture, and social activities.  Conclusion In the post-Brexit era, through the residency program, many British citizens and other third-country nationals have successfully gained access to European Union and its markets, along with Greece’s beautiful way of living and the vast business and investment opportunities that lie within it.For more information on the Greece Residence Permit for executives, administrators, or board members and all types of work permits and visas, contact us to speak to an expert from our immigration team directly.

Authors: Alexandra Bretschneider, Vice President & Cyber Practice Leader at Johnson, Kendall & JohnsonEd Ventham, Cyber & Fintech insurance specialist It seems like every day there is news of another major cyber security incident in the press, followed by the latest statistics on the rise in ransomware attacks and extortion demands.Then every couple of months there is a new Cyber security or Privacy law passed by a government body requiring a new wave of compliance. Some governments are also beginning to debate whether they should outlaw the right to pay a ransom to a criminal at all (see article), but cybercrime which is often perpetrated by nation-state actors, will continue to flourish despite the regulatory and legal action taken against the malicious actors.And long gone are the days when only the big companies were the targets for their money or information. In today’s world, no business is immune to being the target of an attack as hackers seek the easiest and most economical means to earn quick cash. Although the ‘spray and pray’ techniques are perhaps not as successful as they once were (the level of company security is undoubtedly rising to counter such obvious cyber threats through the use of antivirus, firewalls, and Multi-Factor Authentication), the sophistication and frequency of cyber attacks and incidents have demonstrated clearly that no one is 100% safe.What was once considered an “IT issue” – now has the attention of the C-Suite and shareholders/board members – it is a companywide problem, from the most senior leader down to the most junior employee.Is there a solution for this dynamic security risk?Cyber risk management requires a broader and holistic focus; it is not solved with only the purchase of the latest and greatest technology, or only a cyber insurance policy. It requires investment in talent, education, training, and a review of internal processes and operations on a regular basis. Cyber risk management is ultimately accomplished through a combination of People, Processes, and Technology.People and Sensitive DataEmployees are the gatekeepers to our organisation. The responsibility for data security should be written into our employees’ job descriptions and understood as part of their duties. Furthermore, organisations should invest time and money into frequent and engaging training tools. Conducting phishing tests periodically can assess the efficacy of a training programme and identify users in need of a refresher course. Consider assigning an in-house cybersecurity director, responsible for the data security oversight of the organisation.ProcessA business should start with a self-assessment, going through the process of identifying what type of data and sensitive information you have, and who should vs. does have access to it. Developing solid processes around managing access, deploying patches, acting on alerts and notifications of a potential incident should be a consistent practice. Businesses should spend time developing cyber-specific incident response policies as a subset of their broader business continuity/disaster recovery planning, and these plans should be tested via tabletop exercises. Process should include supply chain/vendor management: taking a look at vendors and partners to question what type of access to or sensitive information they have about your organisation, and how it is managed. Ultimately, what is your ‘vendor management protocol’ – how do you choose them, and what due diligence do you do to ensure your reliance on their support is not crippled in the event of an incident which is indirectly going to affect your company’s integrity and operation? This is critically important if you are reliant on a managed-service provider for your IT infrastructure and support but still applies to non-IT/operational vendors.Computer Systems and TechnologyOf course – when we think of cyber we often think of technology. The technologies of today that a business should be considering include Intrusion Detection Systems, sophisticated spam filters and firewalls, next-generation antivirus software, Endpoint Detection, and Response systems. Multi-factor authentication has become a must-have tool in the eyes of insurance companies for them to consider offering coverage, which can be centralised through a password management software.But, to err is human. And as much as we invest in the prevention of a cyber attack, human error still leads to the majority of cyber incidents today. The goal of your cyber risk management programme is not to reach a state of being entirely cyber secure (because no such state exists). Instead, your goal is to reach a state of cyber resilience in which your organisation can sustain and recover from an attack.Cyber Security InsuranceOnce a luxury purchase, Cyber insurance has become a must-have for businesses everywhere to ensure the survival of your organisation after an attack. Insurance is a form of risk transfer and is meant to provide a backstop when the preventative controls of an organisation have failed or proven inadequate. Cyber insurance provides the key components of incident response, in the form of attorneys/lawyers, IT forensics, criminal negotiators, public relations, and compliance with the various privacy laws. Coverage is designed to respond to and provide the defense during a regulatory investigation, and cover fines and penalties assessed to you, as long as they are insurable by law.Cyber-crime coverage offers indemnification for insureds who have suffered social engineering, funds transfer fraud, and phishing attacks. With the explosion of ransomware during the global pandemic, the coverage for the extortion demands offered by standard cyber insurance policies proved critical to the recovery process.Coverage for revenue loss related to a cyber incident can be found in a comprehensive cyber insurance policy, both during the time your network is down, and/or after you are back up and operable but have then lost prospective revenue as a result of an adverse media event.As quickly as the cyber risk evolves and grows, cyber insurance carriers are constantly trying to keep up. With the increase in both frequency and severity of attacks, profitability on insurance premiums historically has waned and the insurance markets are being forced to increase rates in order to keep up with the increased losses. In order to minimise their exposures, insurance markets are modifying policy terms and conditions, restricting coverages that were once broadly written, like extortion, with sub-limits and coinsurance penalties. Ensuring you have a comprehensive cyber policy is just one issue – but obtaining coverage at all is becoming problematic for organisations that are falling behind the curve in their cybersecurity controls. Without multi-factor authentication on email access, administrator accounts, and remote access are becoming a prerequisite to obtaining coverage. Segregated backups, encryption, firewalls, incident response planning, employee training and more are becoming preferred controls securing a better premium rating.TakeawaysBusinesses should start the conversation now with their broker partner about what is needed to be insurable and to obtain optimal insurance terms. With cyber insurance continuing to serve as the lifeblood for organisations to recover from cyber-attacks, obtaining and retaining coverage is crucial as part of broader cyber risk management and resilience programming.

Why the Netherlands? This is a very often asked question. That’s not so surprising, given that the Netherlands is an attractive country for foreign entrepreneurs due to its strategic location and good infrastructure.It is not for nothing that many non-European companies choose the Netherlands as their first choice of a European base. In the past, American companies often chose the UK as the starting point for their European operations. Now that the UK has left the EU, the Netherlands is a logical alternative.The Netherlands as a European baseThe Netherlands attracts many international companies as a European base. It is a country known for its open trade culture and its hospitality to foreign entrepreneurs. It lends itself as the perfect base for your European activities. It offers:a tax treaty with more than 80 countriesan attractive tax environment for foreign companiesperfect IT infrastructure (fibre optic network)local people who speak English to a good standarda stable economy and stable public financesa high level of education of residentsfew labour disputes and strikesCountry and GovernmentThe Netherlands has a total population of 17.5 million (June 2021). It is a parliamentary democracy with a monarch as head of state. Government ministers are the people’s representatives with respect to the actions of the government.The monarch has no political power and cannot therefore be held politically accountable by parliament. The Netherlands is divided into 12 provinces, each with its own local authorities.Tax environmentThe Netherlands is known for its favourable tax climate for foreign companies. The participation exemption – a measure that prevents double taxation of company profits — can be included in the corporate income tax assessment. Whilst the law does impose a number of conditions, the application of the participation exemption is still a plus point for the Dutch business climate.Corporate income tax is low with 15% over the first € 245 000 profit and 25% over the additional profit. By splitting a concern into several limited companies the average tax rate can be reduced. There is also a VAT advantage for trading companies. A company established in the Netherlands can make use of the import licence referred to in Article 23 of the Dutch Turnover Tax Act. In concrete terms, this means no pre-financing of VAT when importing goods.ExpatsThe Netherlands is also an attractive country for ex-pats. The country’s second language is English. The Netherlands is also seen internationally as an open and tolerant country so that employees and employers alike feel at home here. There are many complementary reports from ex-pats about the Netherlands posted on YouTube. (Search: ‘expats — living in the Netherlands’.)Furthermore, ex-pats benefit from the ‘30% ruling’. This helps compensate for the extra costs incurred by an ex-pat working abroad, whereby 30% of their income is exempt from income tax. There are, of course, some conditions that must be met.Structuring profit streamsWhen doing business internationally, it is often (fiscally) interesting to look at how the profit streams of the Dutch and international activities are arranged. This limits the risks to your business. Furthermore, you can take advantage of various tax schemes and benefits in the different countries where you operate. Of course, it is necessary to comply with the EU regulations on Base Erosion and Profit Shifting (BEPS).
An advantage of the Netherlands is the ease and openness of communications with the tax authorities. It is possible to consult on this subject in advance and reach agreements (APAs). In other EU countries, this is often not possible and there can be long periods of uncertainty about, for example, applied intercompany prices.EmploymentIn the Netherlands, labour matters are regulated slightly differently than in other countries. In America, for example, Dutch labour law is regarded as being complex. Much has changed in recent years, although the complexity remains. However, the current system is good to work with and flexible if you manage it well.The Netherlands now has a labour potential of more than one million self-employed workers. This makes flexible business easy.The Netherlands as a distribution countryThe port of Rotterdam is the largest port in Europe; Amsterdam Airport is one of the larger European hubs for goods and people. The Netherlands is a strategic choice geographically. 95% of Europe’s most lucrative markets are just 24 hours’ drive away from Amsterdam or Rotterdam.The storage facilities for all kinds of goods are enormous. The Netherlands has few natural resources and is forced to earn its income by trading.Some factsThe Netherlands is ranked as the most competitive economy in Europe and fourth in the world according to the World Economic Forum, the fourth most competitive nation in the 2020 IMD rankings; and fifth in the 2020 Global Innovations Index.The EU Innovation Scoreboard 2020 ranked the Netherlands as the fourth-best nation for innovators. These are impressive figures for a small nation.Founding your own businessThe most common legal form is a private limited liability company (‘BV’). Incorporating a company is straightforward and can be done within one week if you have all the documents in place. Opening a bank account has become more difficult over the last few years, but this is a development occurring right across Europe.Interested in the Netherlands?For more information on doing business in The Netherlands, we have launched a new platform - Centuro Connect, that dives into blueprint specifics helping you do your research all in one place. It is the ultimate tool for understanding market entry options, HR, Immigration, Legal Requirements, Tax & Accounting, and much more.

We recently had the privilege of speaking with Executive Vice President and Group CEO of Verizon Consumer, Ronan Dunne. In this exclusive interview, Ronan provides key insights into how 5G is transforming our lives, and the impact it has had on Verizon.How is 5G transforming Verizon / our lives?Ronan Dunne: Whenever a new generation of technology comes out, we’re always prone to saying, “So what’s the new – new?” 5G has significantly enhanced existing capabilities, including:- The use of mobile edge computing: the ability to push a computer off an individual device and to be on the edge of the network and rely on the low latency of the 5G network – means that industrial robots, which usually cost around 100 000 dollars, can now be built for 25 000 dollars as there is less hardware which needs to be inserted.- The ability of the 5G network to support 10 times as many connected devices are actually the reality of AR / VR reality. Instead of a headset that typically requires you to be wired to it, we’re talking about a clip on the side of your designer sunglasses, which is giving you an augmented reality capability, and practically speaking we’re about 12-18 months away from those products being commercially available.- Across all of these considerations, there is much to be excited about with 5G aiding a lot of what we dreamt of real in a short period.Is 5G currently available globally or only in the US?Ronan Dunne: In all fairness, mobile edge computing is very much in its infancy in relation to 5G. 5G capability is being deployed across all the world currently. It is mostly deployed in the mid-band regions, where a capacity of 3.5 gigahertz can be the sweet spot. In the UK, you can already enjoy 5G on your handset. There is massive capacity, for example, a download speed of 10Gigs, not 10 megs on a mobile device. This is coming out everywhere, however requires some of the standards to be upgraded and “SA standalone core” to be uploaded to the 5G networks.We’re talking about a 12-18 month cycle to deliver commercial-grade capabilities in the US and maybe 18 months behind that in Europe.As the current market leader, how does Verizon stay ahead and lead its market share?Ronan Dunne: The trick as a leader is not to do what is expected and to do the unexpected. Essentially divorce the industry and rewrite the rules of the game. My big passion is that actually, we’re not in the technology business at all. In my experience most consumers don’t buy tech, they buy the experience that tech enables.I see us as an experienced company. So my focus over the last few years has been turning the network in the service of the experience and outcomes. Rather than perhaps how Verizon was previously seen, as an engineering-led and network organisation.This has allowed us to evolve to the situation now, where much of what we do is around quality, choice, and experience. We partner with Disney, Apple Music, Google, etc. to create a platform that allows the most creative people across a wide range of industries to have access to the best tech that creates outcomes for customers. We have a well-executed platform strategy.What tips do you have as to how entrepreneurs could differentiate themselves?Ronan Dunne: At Verizon, we’re actually a service company, a subscriptions business, not a product. Typically, many think of us as a product business but the product is actually an Apple or a Samsung handset or device. The service is the ability to use that to do multiple things.  Depending on whether you’re in a product or service organisation, will determine the approach you need to take.Within a service organisation, two things I would say is:1. The service industry isn’t a homogeneous market – we focus on detail segmentation – we use segmentation as an acquisition tool. On the other hand, there’s value-based marketing, which is used as a retention tool.Once a customer joins Verizon, we build a profile of that customer, based on their engagement with us and the services we offer. So we then attribute that to build a capability, meaning that with every touchpoint that customer has with us, whether it’s the network itself or a retail store or elsewhere, we show up how the customer expects.  We use that rich insight, to know and recognise our customers.That’s really the key, to deliver personalised service and experience.2. We want to ensure that we go from the synergy of scale to the beauty of a personal relationship. We are the largest telecommunications company on the planet; we have 100 million consumers every day and 130 million customers overall between consumer and business. But every one of them is an individual and our ability to personalise is an essential ingredient as to how we differentiate.I think in any business, whether it’s service or product if you at least have that mindset you will be focused on what the customer truly values, not what you believe is important.To discover more about this insightful interview, watch the full episode here:

We are delighted to share with you our third edition of the Centuro Connect magazine. Things over at Centuro Global have been so busy, with many new milestones being achieved and our team growing in size and capabilities.We hope that the content in this magazine helps to reflects our appetite for risk and trendsetting. Our goal is to change the status quo of traditional tested methods of business and push ourselves beyond the normal boundaries.  Some of the key topics include in this edition will cover:-Latest update and summary of Centuro Connect -Insights and dedicated features related to Legal, Insurance, Marketing, Immigration and Tax -Events -Quick ReadsAs we head into the Autumn, we are excited about our upcoming plans, growing our community, and increasing the deal flow in the network. This issue provides updates and insights into the last quarter, and we hope you enjoy reading the content.To access the full magazine, please click HERE.  

2021 saw the 75th anniversary of the general ban of games of chance in Brazil1. The last roulette spin was played in the casino of the iconic Copacabana Palace Hotel on the night of 30th April 1946, when President Dutra issued a Decree-Law confirming the prohibition. Ever since, such general ban has been embedded in the controversial article 50 of the Criminal Contraventions Law, which defines games of chance as those where the result of the games relies exclusively or predominantly on luck and does not authorize them to be conducted in public venues or those accessible by the public, whether an entry is required or not. In the context of the foregoing, considering the internet as a public venue or one accessible by the public has attracted a lot of discussions, especially since hundreds of foreign online gaming and betting operators currently access the Brazilian market and accept bets from Brazilian punters. A conservative interpretation of the Criminal Contraventions Law would indeed consider the internet as satisfying the requirements for being deemed a public venue or one accessible by the public, especially as from 4th August 2015, when Federal Law No. 13,155/2015 amended paragraph 2 of Article 50 of the Brazilian Criminal Contraventions Law to specify that players betting online are equally subject to the payment of a fine. Currently, the only legal forms of authorised gambling in Brazil are:State-run lottery (both at Federal and State level), including scratch cards;Horse race betting at authorised racetracks;Online or land-based fixed-odds sports betting (pending regulation to be issued in 2021, as promised by the Federal Government, subject to licensing). Horse race betting is allowed at authorised race tracks in Brazil It follows from the above that the deciding factor in ascertaining whether a game is considered to be one of chance in Brazil is the extent to which winning or losing depends on luck or skill. Whenever the outcome depends predominantly on skill (even if luck is a factor in the result), the game will not be considered gambling and, hence, will not be subject to the restrictions of the Criminal Contraventions Law.Recognition of the distinction between games of skill and games of chance is increasingly present in Brazil nowadays. Skill games are generally referred to as “mind sports” (esportes da mente, in Portuguese). In this regard, the Brazilian Federal Government recently approved the Brazilian Chess Association for the Visually Impaired, the Confederation of Texas Hold’em, and the Brazilian Bridge Federation, recognizing that such games are sports. The Brazilian Federal Government recognizes Chess as a sport.In the context of the above, there are two main bills seeking to legalize all forms of gambling in Brazil, one proposed in the Senate and the other in the House of Representatives. Neither bill has yet been approved by the house where they have been respectively proposed:House of Representatives Bill of Law No. 442/1991Seeks to legalize various forms of gambling, both online and land-based.Registry for gambling addicts will be put into place and an individual will be included either by choice or judicial order. Such persons cannot gamble.Licensed entities must be:Incorporated under Brazilian law, with headquarters and management in the country;Technically capable of conducting the activity; and Financially and economically credible.Shareholders/managers must also provide documents such as income tax returns and clearance certificates, have no criminal precedents, etc.Servers for online gaming operators must be located in Brazil.Land-based casinos: the number of establishments per state varies between one and three and is based on the number of inhabitants of each state. Based on the current population of each State:São Paulo could have up to 3 casinos.Rio de Janeiro, Minas Gerais and Bahia could have up to 2 casinos each.Other Brazilian states could have 1 casino each.This limit would not apply to hydro-mineral resorts where casinos have previously been operated (i.e., certain cities in the State of Minas Gerais).No group may be granted two licenses in the same state, nor more than 5 licenses in the country. Licenses will be granted for 30 years, renewable for another 30 years.Senate Bill of Law No. 186/2014Seeks to legalize various forms of gambling, both online and land-based.Providers must comply with Central Bank rules regarding:Identification of players.Communication of financial transactions.Keeping of records.The first concrete development towards the legalization of gaming and betting came at the end of 2018, with the enactment of Federal Law No. 13,756/2018, legalizing fixed-odds sports betting, both land-based and online. The law defines fixed-odds sports betting as a lottery modality consisting of a betting system related to real sports-themed events (and, therefore, in principle, not to electronic sporting events), in which how much the punter can win if his/her prediction is correct is defined at the time the bet is placed. At the end of 2020, the Brazilian regulator (SECAP – a division of the Ministry of the Economy) announced plans to roll out regulations for fixed-odds sports betting by July 2021, a promise which was not honoured.In its latest draft decree released last year, SECAP opted for the concession licensing model out of the three possible approaches (being the other two approaches: authorization licensing [which would entail an unlimited number of licenses] or monopoly licensing). Under the concession model, operators will have to bid competitively against each other to "win" one of the few licenses limited in number. Initially, it was expected that no more than 30 operators would be able to function in Brazil at any one time. However, the latest rumors indicate that the total of available licenses should be between 50 and 100. But considering that approximately 500 foreign sportsbooks are believed to be currently operating in Brazil's market, even this increased number of licenses may not be sufficient. However, there is still hope this wind may change direction. Sixty-six companies responded to a recent Request for Information issued by Brazil’s National Economic and Social Development Bank (BNDES) and thirty-eight were selected to receive a Request for Proposal to select a company or consortium of companies to assist BNDES in structuring the industry for fixed-odds sports betting in Brazil, which would include working with SECAP in defining the most appropriate business model and legal framework. The news is that the qualifying applicants had not yet received such RFPs by mid-July and this is the reason why SECAP could not honor its promise to roll out the regulations. This may now happen in the months to come.Besides not defining the licensing model for fixed-odds sports betting in Brazil, Law No. 13,756/2018 was also greatly criticized by the industry for contemplating a turnover tax (3% for online operations and 6% for land-based operations), in addition to the taxes usually paid by companies operating in Brazil.Fortunately, this changed in July 2021 when Law No. 13,756/2018, by means of an Amendment to Provisional Measure No. 1,034/2021, which was converted into Law No. 14,183/2021, whereby Gross Gaming Revenue (GGR), rather than total revenue/turnover, became the basis for calculating the additional tax paid by licensed operators.ARTICLE CONTINUED HERE