Brazil considers sports betting as new legislation clears first hurdle
Online revenues would be capped at 8% under the new proposals
Legislators in Brazil’s Chamber of Deputies have approved new legislation that includes the authorisation of retail and online sports betting.
The suggested online tax rate would see operators pay a minimum of 89% of betting handle back to customers. Operator gross revenues are capped at a mere 8%, with the Brazilian government receiving the remaining 3%.
The bill, called Provisional Measure 846/2018, is aimed at addressing the distribution of lottery revenues to public, cultural and social initiatives throughout Brazil, however the bill also includes the authorisation of land-based and online sports betting, subject to certain restrictions.
The measure gives Brazil’s Ministry of Finance a two-year window to create a regulatory sports betting regime and issue licences to operators, but makes no reference as to how many will be up for grabs.
There was only one dissenting voice in the lower chamber, with Social Christian Party MP Gilberto Nascimento questioning the validity of creating “a generation of addicts” just to obtain more money for the public purse.
The measures have received the support of incumbent Brazilian justice minister Sergio Moro, who said the provision of extra funds for Brazilian security forces was “very important” to Brazil’s ongoing security.
Following the successful vote, the measure will now pass to the Brazilian senate for approval, however due to its status as a provisional measure, senators must approve 846/2018 by 28 November for it to become law.