Brazil has finally launched its Provisional Measure on sports betting after a wait of 20 years.
The Brazilian President, Luiz inacio Lula Da Silva, has signed the Provisional Measure, which was approved by the Ministries of Finance, Planning, Management, Health, Tourism and Sports.
The PM, once signed by Lula as President, will be published and implemented by the Brazilian government for a maximum of 60 days before being extended by another 60.
What are the steps?
Licensed operators will have to pay a tax of 16% on gross gaming revenues (GGR). A percentage of the tax will go to anti-match fixing initiatives and public health initiatives.
Total 2,5% will go to the National Fund for Public Security. Other than that, 1,6% of the money will be given to sports clubs while 10% goes to social security. The Ministry of Sports and Education Initiatives will each receive 0.8%.
The tax rate on winnings will be 30%, with a maximum of R$2,112 ($429) (PS344/EUR395/$429).
The Brazilian Ministry of Finance is responsible for the regulation of sports betting. It will also be in charge of advertising and imposing fines on those who violate the rules. Bets will be prohibited for those under 18, athletes, people who have a connection to sports organizations and bookmakers.
The Ministry of Finance will benefit from the appointment of the Special Secretariat of the Federal Revenue of Brazil, which will evaluate whether operators are in compliance with the requirements for a license.
Since 2018 a law was passed to regulate the sports betting industry in Brazil, but it wasn’t proposed by Jair Bolsonaro.
Hugo Baungartner, a former iGB World Series of Politics host , gave his views on Brazil’s regulated markets on the podcast earlier this week.
