Brazil Edges Closer to Legal Sports Betting with Passage of Key Legislation
The South American nation of Brazil is nearing the legalization of wagering on sporting events. Legislation concerning lottery operations, encompassing provisions to permit sports betting, has been given the green light by the lower house of parliament. While Provisional Measure (PM) 846/2018 primarily centers on the allocation of lottery proceeds among public safety, cultural endeavors, and social initiatives, it also aims to grant authorization for sports betting activities, both digitally and at physical locations.
The Finance Ministry would be granted a period of up to twenty-four months to formulate the requisite regulations and issue licenses. Legislator Flexa Ribeiro, the proponent of the measure, projects that the Brazilian market for internet-based sports wagering holds a value of R$4.3 billion (US$1.14 billion).
It is reported that the measure encountered minimal opposition, with only Congressman Gilberto Nascimento of the PSOL party casting a dissenting vote.
The specifics of the measure stipulate that land-based operators must distribute a minimum of 80% of the total wagers back to patrons. The overall revenue share retained by operators cannot surpass 14%, with the remaining 6% being allocated to governmental programs.
Internet-based operators would be obligated to disburse 89% of the wagered sums to participants, with an 8% limitation on revenue and the residual portion directed to the government.
To achieve formal enactment as law, PM 846/2018 must now secure the endorsement of the Senate by November 28th. Brazil’s incoming head of the justice ministry, Sergio Moro, has already expressed his backing.
This advancement in regulatory efforts follows related developments earlier in the year that elicited a decidedly varied response from the market.
In March of 2014, a proposed piece of legislation in Brazil, designated PLS 186/2014, sought to make various gambling activities legal, encompassing bingo, internet-based sports wagering, and casino establishments. This generated significant attention from gaming enterprises both domestically within Brazil and on a global scale. Nevertheless, the legislative proposal was ultimately rejected by the Senate committee on a 13 to 2 vote.
The bill put forth the idea that the Brazilian national government would hold the responsibility of granting licenses for all these gambling endeavors. Subsequently, the Ministry of Finance would be entrusted with designating a particular federal entity to oversee the regulation and continuing licensing procedures.