Brazil Sports Betting

Brazil may finally witness the implementation of online sports betting legislation after years of waiting, The cards are on the table, but nothing is finalized just yet. Jorge Kajuru, a senator from Brazil, addresses the chamber of deputies. He is prepared to assist a sports betting measure in passing, possibly as soon as this week. On May 4, Senator Jorge Kajuru stated that the government would “in the next days” submit a plan to regulate and tax sportsbooks for consideration by the National Congress. That might imply that this week, the analysis will be completed.

Modifications will be performed through a temporary measure and can be put into effect right away. Legislators still need to approve them, which could take up to six months. Kajuru stated in a statement that he would be the legislation’s sponsor. Together with Senator Hamilton Mouro, the politician drafted the measure laying out the guidelines for businesses providing betting services in the nation.

The legislator recommends a slightly more accommodating strategy than that of the government’s economic team, which is headed by Fernando Haddad, the minister of finance. Haddad wants online betting operators to pay BRL30 million (US$6.05 million) for a five-year license.

Kajuru thinks Haddad’s strategy won’t work. He claims that although operators desire to be a part of the sector, they are unwilling to pay “astronomical, awful” costs. As a result, he demands a license cost that is in line with the size of each operator. Haddad seems open to the change, Kajuru continued.

If nothing else changes, the government will be entitled to receive 15% of the entire revenue collected from sportsbooks. The operator’s gross gaming revenue, which subtracts all payouts from the total income, will be used to compute this amount.

In order to lower the likelihood of gambling addiction, the senator added that he aims to incorporate a regulator of sports betting advertising. He doesn’t want to limit the market with overly rigid regulations that could have the opposite impact and fail to spread awareness about responsible gaming.

The Chamber of Deputies is where any provisional legislation in Brazil is first processed, and this is also the case with the sports betting bill. It reached the Senate, where it has been debating for nearly a year.

Companies must fulfill a number of criteria in addition to paying the licensing cost in order to be accredited and to be able to conduct business legally in the nation. They must have their headquarters in Brazil, have a minimum capital of BRL100,000 ($20,190), get certificates for the payment methods they use, and install mechanisms to prevent results from being manipulated.

The customary payment of other taxes by businesses, including the Corporate Income Tax, Social Security Financing Contribution, and others, will also continue. The gross income is used to compute each of these.

The General Sports Law of the nation will probably be discussed by MPs in conjunction to the laws pertaining to sports betting. Several laws that pertain to the sports business are being proposed to be repealed along with new subsegments. The plan, which was created by a Senate commission, includes several innovations like the definition of athletics as a “activity of high societal interest.”