Brazil to pass bill that lays ground for sports betting
The lower house approved lottery legislation that also includes a potential regulation of sports betting in the country.
Brazil.- The political landscape is uncertain in Brazil as President-elect Jair Bolsonaro is set to take office on January 1 and the gaming industry is waiting to see what the upcoming government has in store for it. However, the Chamber of Deputies took a significant step towards a new gambling scenario this week as it approved a lottery-related measure that also involves sports betting.
On Tuesday, the lower house passed Provisional Measure (PM) 846/2018, which sets the division of lottery revenue among several public programs. However, sports betting took the spotlight as the measure also plans to authorise the segment on both land-based and online platforms in “a competitive environment.”
A vast majority of the house voted in favour of the initiative, which only got one contrary vote, coming from Social Christian Party MP Gilberto Nascimento who claimed the creation of a “lottery through computers” would “create a generation of addicts to generate a few million reals more for the public safety fund.”
The PM would set a minimum 80% on land-based operators’ betting handle to be paid to customers, with a 14% cap on their gross revenue and the other 6% going to government programs. In the case of online operators, the minimum to be paid to customers would be 89%, while revenue’s maximum limit would be set at 8% and the government would get the other 3%.
The measure, which would give the Ministry of Finance up to two years to adjust regulations for the segment, has been turned to the Senate, which must approve it by November 28 (next Wednesday) for it to become law.
Regarding the upcoming government’s stance on the gambling industry and this measure in particular, incoming Minister of Justice Sergio Moro voiced his support as he considers extra lottery funding to be “very important” for security forces.
