The Brazilian government has introduced a Provisional Measure for sports betting, which brings an end to a two-decade-long waiting period for the country.
Brazilian President Luiz Inácio Lula da Silva approved the adoption of the Provisional Measure (PM), which was also signed by the Ministries of Finance, Planning, Management, Health, Tourism, and Sports.
After being signed by President Lula, the PM will be published by the Brazilian government and will remain in effect for a maximum of 60 days initially. It may be extended for another 60 days.
What do the measures entail
Licensed operators will be required to pay a 16% tax on their gross gaming revenue (GGR), with portions of this revenue allocated to public health initiatives and anti-match-fixing efforts.
The National Fund for Public Security will receive 2.5% of the total revenue, while 1.6% will go towards supporting sports clubs, 10% towards social security, 1% towards the Ministry of Sports, and 0.8% towards education initiatives.
Winning players will be subject to a 30% income tax, with a maximum cap of R$2,112 (£344/€395/$429).
The Ministry of Finance will regulate sports betting in Brazil and will be responsible for advertising and imposing fines for violations. Individuals under the age of 18, those affiliated with sports organizations (including athletes), and bookmaker employees are prohibited from placing bets.
The Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance will support the Ministry in determining whether operators meet the requirements for a license.
Although a law was enacted in 2018 to regulate sports betting in Brazil, it was not advanced under former President Jair Bolsonaro. Hugo Baungartner recently shared his predictions on what a regulated market in Brazil might look like on iGB’s World Series of Politics podcast.