Brazil Imposes Tax of 18% on Sports Betting Operations
Ready to dive into the world of regulated sports betting in Brazil? Buckle up, because things are about to get interesting! Following the signing of Provisional Measure No 1,182, the sports betting industry in Brazil is finally stepping into the limelight after years of anticipation. This significant move officially ratifies the 2018 sports betting regulations, albeit with a few adjustments.
The historic moment and paves the way for sports betting regulation in the country and creates the National Secretariat for Games and Betting (SNJA) to oversee the sector. Excitingly, foreign operators can now apply for licenses under the new legislation, and the industry will be subject to stricter marketing limitations and a slightly higher gross gaming revenue tax.
Signing of Provisional Measure No. 1,182 sets the stage for regulated sports betting in Brazil. As the law stands, it is expected to last 120 days before being approved by the National Congress. If approved, the Ministry of Finance will play a crucial role in implementing the new regulations and setting up the SNJA.
The Provisional Measure makes several amendments to the 2018 law. One significant change is the creation of the SNJA, which was not included in the original laws. The legislation also increases the gross gaming revenue tax from 16% to 18% to provide more funding to the Ministry of Sports. Additionally, foreign operators can now apply for licenses, with the licensing fee projected to rise from R$22.2 million to R$30 million.
In contrast to the 2018 law, the new regulations impose broader marketing and promotional restrictions. Operators will be required to promote responsible gambling messages and will not be allowed to purchase sports broadcast rights. The law establishes a self-regulatory structure in which gaming establishments must adhere to the National Council for Advertising Self-Regulation (CONAR) regulations.
Regulated sports betting in Brazil has been a long time coming, with the approval of both land-based and online sports betting in 2018. The technical regulations took several years to finalize. Following match-fixing revelations, a change in leadership, and public pressure, the demand for regulation intensified. Keep an eye on this space as the sports betting industry in Brazil continues to evolve!
Sources:1. Brazil Launches Sports Betting Regulations2. Brazil Legalizes Sports Betting3. Brazilian Congress Approves Sports Betting Regulations4. New Online Gambling Regulations in Brazil5. Overcoming Delays in Land-Based Gambling Legalization in Brazil
The Provisional Measure No. 1,182 signifies stricter regulations for sports-betting in Brazil, with the establishment of the National Secretariat for Games and Betting (SNJA) to oversee the sector. This move allows foreign operators to apply for licenses under the new legislation, subject to higher gross gaming revenue tax rates and stricter marketing limitations. However, the law also imposes broader marketing and promotional restrictions, with a focus on responsible gambling.
