Brazil’s President Luiz Inácio Lula da Silva has signed a new bill and provisional measure to regulate sports betting and gambling in Brazil. Congress will review Provisional Measure No-1182 with a view to a federal sports betting launch.
The PT (Workers Party) Government plans to launch within the upcoming months. Finance Minister Fernando Haddad has been part of drafting the provisional measure.
The bill, which also regulates bingo and casinos as well as sports betting, has been an ongoing issue in Brazil, and will bring new sanctioning and administrative procedures as well as set a tax rate.
An 18% tax rate on gross gaming revenue will be applied to operators licensed within the country, while bettors will experience 30% income taxation on any winnings above BRL 2,112 ($446) per year.
Before now, gambling within Brazil has been illegal outside of placing bets online. The new regulations will permit operators to apply for a service grant from public authorities to establish a defined-term license within the Brazilian market.
Brazil expects that regulating sports betting will generate BRL 6bn to BRL 12bn. After paying winnings and deducting both federal and local taxes, operators’ net income will be divided between Brazil’s Public Security Fund, Education Fund and Ministry of Sports among other local sports clubs and organizations.
Currently the estimated cost for a five-year license is BRL 30m and Congress has 120 days to deliberate on the regulations proposed and signed by Lula. Arthur Lira, President of Brazil’s Chamber of Deputies, must also sign before the regulations take effect.
In May, Brazil was found to lead Latin America’s number of suspicious betting reports, but the Brazilian Institute of Responsible Gaming also partnered with the International Betting Integrity Association (IBIA) later that month. New regulations could assist in mitigating further suspicious activity as well as create a healthy, competitive market.
