Brandt Iden, Brendan Bussmann and others discuss the latest developments in Brazilian sports betting as well as the important go-live date.
Hugo Baungartner is the guest on World Series of Politics this week. He says that the development of sports betting has taken place in Brazil over the past 20 years.
He says, “It is the giant.” Everyone is talking about this. Everyone wants to go to Brazil.
He says that the law allowing sports betting in Brazil has been in effect since 2018, but there is no regulation and Jair Bolsonaro, then president, has not made anything official.
Hugo says that this law is near, as ministers who work for Brazil’s new president Luiz inacio Lula da So prepare a bill which could be signed within the next few days.
What can Brazil expect from ?
Hugo claims that the Brazilian government will tax sports betting gross gaming revenues (GGR) at 15%, as announced last week.
He points out, however, that the tax will be added to other taxes in Brazil already in place. This would make the total percentage 26%. Hugo is concerned about this, as he has heard whispers of white labels, which would allow operators to operate “twenty, thirty brands, forty brands, fifty” under a single licence.
A rumoured annual fee of $6m, which could be paid in five years, is another concern. He said that thousands of people may enter the market, which could either be good or bad.
Hugo thinks that the market can be live within thirty days.
Three presidents have overseen this long and arduous journey. Hugo claims that Brazilian law classifies sports betting as a lottery, which makes it more appealing to both the public and the government.
He says, “It is lottery so right now it’s easier to pass this regulation, this law.”
Hugo believes that in the future, Brazil will be under pressure to build full-scale integrated resorts. It remains to be determined whether or not this will actually happen.