Brazil on the brink of sports betting regulation

Brazil’s government has launched a provisional measure for sports betting, in a move that marks the end of a 20-year wait period for the country.

The provisional measure (PM) was adopted by Brazil’s president, Luiz Inácio Lula da Silva and signed by the ministries of finance, planning, management, health, tourism and sports.

Once signed by President Lula, the PM will be published by Brazil’s government and will be enacted for an initial maximum period of 60 days, before it can be extended for another 60 days.

What are the measures?

A 16% tax on gross gaming revenue (GGR) will be payable by licensed operators. Percentages of this will be distributed to public health initiatives and anti-match-fixing initiatives.

In total, 2.5% will be given to the National Fund for Public Security. Elsewhere, 1.6% will go to sports clubs and 10% to social security. The ministry of sports will receive 1% and education initiatives 0.8%.

Players will be subject to 30% income tax on winnings, which will be capped at R$2,112 (£344/€395/$429).

Brazil’s ministry of finance will be responsible for regulating sports betting in the country, holding responsibilities for advertising and setting fines for those who infringe upon the regulations. Those under the age of 18, people with ties to sports organisations – including athletes – and bookmaker employees will not be allowed to place bets.

The ministry will be aided by the appointment of a new secretariat – the special secretariat of the federal revenue of Brazil of the ministry of finance – which will assess whether operators meet the conditions for a licence.

A law has been in place to regulate sports betting in Brazil since 2018, but this was not advanced by then-president Jair Bolsonaro.

Earlier this week, Hugo Baungartner gave his thoughts on what Brazil’s regulated market might look like on iGB’s World Series of Politics podcast.

Original Article