Brazilian government reveals more details of sports betting regulation
The Ministry of Finance has revealed some of the content of the provisional measure to regulate sports betting at the federal level.
Brazil.- The Ministry of Finance has provided more detail on the text of the provisional measure for federal sports betting regulation. Sources from the ministry told O Globo’ Panorama Esportivo that betting will be permitted only sports results, excluding other types of bets, although it’s been suggested that this could be addressed later in Congress.
It was also clarified that the taxation of any other type of gambling, including igaming, is not part of this measure.
Although sports betting was legalised in Brazil by Law 13,756, which was approved four years ago and promulgated by former president Michel Temer on December 12, 2018, the sector has not yet been regulated. It is estimated that around 450 bookmakers operate in the country, but are hosted abroad, causing an annual loss to the state of between R$6bn and R$8bn since 2019.
The first objective of the measure is to create an obligation for betting companies to establish themselves formally in Brazil and to start paying taxes. The tax rate has not yet been defined.
The Ministry of Finance will publish ordinances with extra clarifications. One ordinance will explain how companies can regularise their situation in the country, while another will address issues such as the manipulation of bets.
Last month, Minas Gerais became the first state to launch legal sports betting in Brazil. The state-owned lottery operator Loteria Mineira (LEMG) has launched an app and the website Lotominas.bet on a 120-day trial basis.
The state government granted LEMG first rights to test the operation of a licensed sports betting platform. Customers certified via Brazil’s CBF registry may bet on sports and play instant lottery and keno. A promotional message on the site describes it as “the first licensed platform in Brazil” and states that “What you play with Lotominas.bet stays in Minas Gerais!”.