Brazil Takes a Giant Leap as Sports Betting Gets Regulated with 18% TaxPublished July 25, 2023 by OCR Editor
After significant delays, Brazil officially legalizes sports betting, with President Luiz Inácio Lula da Silva signing the Provisional Measure (PM) implementing the 2018 law. This milestone brings several amendments, including an 18% tax on gross gambling revenue.
Brazil has made a significant achievement as sports betting is now officially regulated in the country. After years of delays, President Luiz Inácio Lula da Silva signed the Provisional Measure (PM), implementing the 2018 law, a historic move for the country.
The approval of the 2018 Brazil sports betting regulations outlined in Law No 13,756 is signified by the signing of Provisional Measure No 1,182, which includes several notable amendments. One of the significant changes is the introduction of an 18% tax on gross gambling revenue, which is a slight increase from the previously proposed 16%. This adjustment aims to channel more revenue to the Ministry of Sports, with the amount increasing from 1% to 3%.
Moreover, the updated PM imposes more detailed marketing restrictions and an increased license fee. Although the exact cost of a license is not explicitly mentioned in the PM, it is expected to rise to R$30 million ($6.35 million/€5.74 million/£4.94 million) from the previously established R$22.2 million.
A key part of the PM is the establishment of the National Secretariat for Games and Betting (SNJA), which is responsible for regulating sports betting in Brazil. The Ministry of Finance oversees the SNJA and has been actively recruiting for the new regulatory body since last month. The plan is to hire 70 employees to support its operations.
Once the PM is signed into law, the National Congress has 120 days to approve the measure. However, the regulation takes effect immediately as the law of the land unless Congress blocks it during this period.
Including a clause allowing foreign operators to apply for a license is a noteworthy addition to the regulations. This clarifies the previously ambiguous stance on foreign operators' eligibility to participate in the Brazilian sports betting market.
The enactment of the PM signifies a major step forward in Brazil's journey to regulate sports betting since the 2018 law initially passed the Brazilian Senate. As the government moves ahead to establish the SNJA, it will play a crucial role in defining license procedures and other technical regulations, further solidifying the legal framework for the sports betting industry in Brazil.
Brazil's sports betting market presents promising growth and investment potential, attracting both local and foreign operators interested in tapping into one of South America's largest economies. With the industry quickly developing, it brings in new sources of revenue, thrilling gaming opportunities, and enhanced protection for Brazilian bettors.