After years of delays and setbacks, President Luiz Inácio Lula da Silva has signed a provisional measure implementing a 2018 law that legalises and regulates sports betting in Brazil.
Brazil’s National Congress now has 120 days to approve this. The legislature can block it, but as of now it has legal effect.
Amendments to the original law include a higher tax on gross gaming revenue and a higher licence fee as well as more detailed marketing restrictions.
The Ministry of Finance will also create the National Secretariat for Games and Betting to establish licensing procedures and to regulate the industry, an agency not contemplated by the original bill.
The tax on revenue has increased from 16 to 18 per cent to increase the amount of revenue flowing to the Ministry of Sports from one to three per cent.
The cost of a licence was raised to R$30m from R$22.2m and the provisional measure also clarifies that foreign operators will be permitted to apply for licences.
Operators will be required to promote responsible gambling messaging and are barred from acquiring broadcast rights for sports. The provisional measure includes a self-regulatory framework in this area.
Gambling businesses are expected to comply with the National Council for Advertising Self-Regulation standards.
Source: Fantini’s Gaming Report