Transparency, taxes, and responsible gambling: Brazil’s proposed regulations

Posted: May 15, 2023 17:30 Posted by Matthew Calleja
Category: Americas, Regulatory, Responsible Gaming,
Posted: May 15, 2023 17:30 Category: Americas, Regulatory, Responsible Gaming, Posted by Matthew Calleja

Brazil’s Federal Government has unveiled its forthcoming plans to regulate fixed-odds sports betting, signalling a significant development in the country.

From proposals to action: Brazil’s path to regulated sports betting

The Ministry of Finance has drafted proposed rules and measures, which have been shared with stakeholders and agencies through a provisional notice on the government’s website. These measures aim to establish a regulated framework for sports betting in Brazil. The proposal involves multiple ministries, including Planning, Management, Health, Tourism, and Sports, to ensure transparency, supervision, and consumer protection.

One key aspect of the proposal is the creation of a new industry secretariat under the Ministry of Finance. This body will oversee the accreditation process for betting companies and monitor market activities, including betting volumes and revenues. Once implemented, only licensed operators will be allowed to accept bets on official sporting events, while unlicensed operators will face a complete ban on advertising, including digital media platforms.

The Ministry of Finance has recommended a 16% tax on the Gross Gaming Revenue (GGR) generated by gambling operators. This tax will be calculated based on the revenue obtained from all games played, minus the prizes paid to players. Additionally, player prizes will be subject to a 30% tax, with an exemption limit of BRL 2112 (€390). The collected taxes will be allocated to sectors such as public safety, basic education, sports clubs, and social initiatives.

To ensure a responsible gambling environment and mitigate the risk of gambling addiction, industry companies will be required to conduct awareness and prevention campaigns. Advertising and marketing regulations for the betting industry will be established in collaboration with the National Council for Advertising Self-Regulation (CONAR) to promote responsible and ethical practices.

The proposal will undergo further review and approval by the Chief of Staff, enabling the ministries to enact regulations and develop systems to address issues such as match-fixing. However, there may be potential disagreements with major football clubs in Brazil, as they have expressed their desire for a guaranteed 4% share of betting income for the use of image and athlete rights.

As Brazil moves towards regulating sports betting, these proposals aim to create a transparent, secure, and well-regulated betting landscape while allocating resources to support various sectors and initiatives that contribute to public welfare and development.

SiGMA Group presents a groundbreaking event

The SiGMA Americas Summit is set to take place in São Paulo, Brazil, in June. As a must-attend conference for enthusiasts of the gambling industry in the Americas, SiGMA Americas offers a remarkable platform to connect with industry leaders, engage in thought-provoking conferences led by key opinion leaders (KOLs), and explore innovative expos. Secure your spot early to be part of this exhilarating event.

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