Brazil could see sportsbooks launch online and in person within the next few months.
Expectations have the Brazilian Congress modified the sports betting measure signed this week.
BRASILIA – President Luiz Inacio Lula da Silva signed a sports betting measure on Tuesday that moves regulated Brazil sportsbooks forward. While the Brazilian Congress does have 120 days to amend or block the new sports betting law, online and land-based sports betting could launch within a few months.
After a few years and two presidents to finalize, Provisional Measure 1,182 became Law No. 13,756. The next steps include setting up the framework for legal sports betting under a new gaming agency.
At the height of the market, predictions state Brazil could earn around $420 million in sports betting taxes. However, Brazil sportsbook taxes are expected to be a talking point within the Congress. Starting with expectations around 18%, the tax rate jumped to around 26%, before seeing a 30.82% tax on Brazil sportsbooks’ gross gaming revenue on the provisional decree.
Not only has Congress noted the high tax, but legal sportsbook operators have as well. Per Maia Yoshiyasu Advogados – a law firm in Brazil – operators are criticizing the regulations.
“The reactions [to the PM] are 99% negative,” said Luiz Felipe Maia, founding partner of Maia Yoshiyasu Advogados. “This is because of the taxation, because of the restrictions – but mostly because of the taxation. There’s a lot of work to be done with the Congress to amend this Provisional Measure and make it something feasible for the industry.”
As for the bettors, they will find an unfortunate 30% income tax on any wins over $445.
Other criticisms include payment rules and high operator risk from uncertain rules. And even still, there has been no confirmation on how Brazil wishes to use legal sports betting tax revenue.
Still In a Negative Light
While the sports betting tax in Brazil has positive expectations, the changes come at a time when Brazil sports betting is still in a negative light.
Brazil’s federal police and congress investigated criminals and operators for match-fixing on soccer games. Offered roughly $10-20,000 to perform betting-related prop actions, suspects had contacts on at least three continents.
Already charging 31 people, the court called forth over a dozen soccer players in Brazil’s top soccer divisions.
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News tags: Brazil | Luiz Felipe Maia | Luiz Inácio Lula da Silva | Maia Yoshiyasu Advogados | Provisional Measure 1182
Michael began writing as an NBA content writer and has spent time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant. A graduate of both schools, he covers topics focused on legal sports betting bills, sports betting revenue data, tennis betting odds, and sportsbook reviews. Michael likes to play basketball, hike, and kayak when not glued to the TV watching midlevel tennis matches.