A Big Step Forward
After several years of back and forth, sports betting laws have now been finalised in Brazil. The president, Luiz Inácio Lula da Silva, signed the Provisional Measure (PM), which means that laws originally proposed back in 2018 are now approved.
The signing of these Provisional Measures is a huge step forward for sports betting in Brazil. The law was originally proposed in 2018 and has seen several roadblocks in the way. There have now been several amendments made to the law.
The biggest of these is the increase in tax on revenue for sports betting operators. Operators will now pay 18% instead of the original 16%. One of the reasons for this is to increase the amount of revenue that flows to the Ministry of Sports from 1% to 3%.
The PM was also clearer on the involvement of foreign operators, something was ambiguous in the original bill. It confirmed that foreign operators will be able to apply for a license in the country, something which will no doubt help boost the Brazilian sports betting scene.
A New Regulator
Once the PM has been approved by the National Congress, a process which takes around 120 days, a regulatory body will officially be put in place.
The process for this has already begun, with the Ministry of Finance tasked with establishing the National Secretariat for Games and Betting (SNJA). The SNJA will be in charge of sports betting regulation and licensing procedures. There was no mention of the SNJA in the 2018 proposal.
There is currently no information about how much a license and an application will cost an operator.
Marketing and advertising regulations were also heavily featured in the new laws. License holders will be required to promote responsible gambling and will not be able to get broadcast rights for sports. A self-regulatory framework will also be established.
A Long Wait For Approval
The journey to regulated sports betting in Brazil has been a long one. The law was originally passed in 2018, with the government needing to sign off on technical regulations within two years. After failing to do so, an extension period of two years was provided.
Jair Bolsonaro, the country’s president at the time, decided not to approve these regulations. However, Bolsonaro would lose the 2022 election, and Luiz Inácio Lula da Silva took charge of the country.
The current president has shown a much more positive attitude toward the gambling sector. Despite a few hurdles, he has finally signed the Provisional Measure to move the process forward significantly.
