Brazil hasn’t had legalized sports betting since the middle of the 20th century. But all of this is now about to change as the Senate is awaiting a new temporary measure, which will be soon voted into law and implemented by 2019.
Brazil’s Senate to Vote on Sports Betting
Sports betting is about to explode in Brazil, after the National Congress decided to approve a suggested piece of legislation, endorsing both online and land-based betting activities. The Brazilian Senate is the next step of the so-called Provisional Measure 846/18, and given the support behind the legislation, it will most likely pass.
In fact, the move is just a formality, and the bill is already as good as in the bank. And the plan is not selfish in the slightest. Revenues raised through facilities such as the national lottery Loterias Caixa (Lotex) will now be allocated to various social causes.
As a result, lotteries will also see a peak in interest across Brazil, and most importantly – a legal framework for them to operate in. As a result of the legislation, Brazil will give the Ministry of Finance and Congress a two-year window which will help it work on the legal establishment of the law, including details that have to do with taxation, implementation, licensing, regulation, and even – responsible gambling.
According to Pará Senator Flexa Ribeiro who authored the measure, Brazil will now bite directly into the outflow of capital directed at offshore betting establishments. According to Brazil, the country loses over $1 billion to foreign operators.
By introducing local operators instead, Brazilians can be wagering in their local market, with the taxes going to different initiatives. Most importantly, all operators will have to guarantee that 80% of the entire money flow will go back to customers. Another 14% will be allowed to go back to shareholders and be retained as profit.
Lastly, 6% of the handle will have to be allocated to various social funds and initiatives, including the National Public Security Fore (FNSP), football clubs, and educational institutions, such as public schools.
Most of this law will apply to land-based bookmakers, however, and the online establishments will see their proceedings taxed slightly differently. Online platforms will have to guarantee 89% back to their customers, perhaps because of the more accessible nature of this mode of gambling.
With the bill successfully passing through the Chamber of Deputies, the Senate will be the last legal hurdle, because the measure can be worked on in earnest in 2019. Naturally, there have been a few doubts whether this law can work.
While there has been a united front on passing the bill, one or two MPs have expressed their concerns that this may lead to a “generation of addicts”. It’s a warning that is most certainly worth addressing.
Establishing proper responsible gambling facilities, while mentioned, doesn’t seem to be the focus of the legislation, which may prove a drag on Brazil’s pursue further down the road. That’s why addressing all concerns well ahead of time is advisory.