Brazil gives Green Signal to Revised Sports Betting Legislation
Brazil's quest to introduce regulated sports betting reached a new milestone as the Chamber of Deputies has given its stamp of approval to a revised bill, providing a set of crystal-clear guidelines for shaping the future of the potentially lucrative sports betting industry in the country. The revised legislation encompasses critical facets, including the distribution of revenue, required operator prerequisites, as well as limitations. The new legislation, which integrates certain provisions from previous bills, currently awaits the Senate's approval.
Within the realm of the new bill, only those businesses or companies that have their headquarters and administrative operations decisively rooted in Brazil are eligible to apply for a sports betting license. In fact, this requirement had long been a topic of hot discussion in Brazil. Now, it has officially found its place in the legislation’s language, awaiting the Senate's authorization. Moreover, it is mandated that at least one member of the company that will apply for a license must possess verifiable expertise and practical experience in gaming operations.
To obtain a license would cost up to BRL30 million (approx. US$6.1 million). Of course, the licenses would be awarded only to companies that would meet all the aforementioned stringent prerequisites. The fee, which covers the privilege of operating a solo online betting application, must be settled within a period of thirty days following approval. The license would be granted at the discretion of the Ministry of Finance (MoF) would have a potential lifespan of up to three years, and it would be neither negotiable nor transferable.
In case of a company’s merger or a change in its shareholder pattern, the MoF will conduct a detailed evaluation to determine the continued validity of the license.
The Latin American country’s revised framework now requires operators to contribute 82 per cent of their gross revenues, which is down from the previous 95 per cent retention. Tax revenue distribution shifts from 10 to 2 per cent for the Social Security Administration. Education gets 1.82 per cent, while sports organizations receive 6.63 per cent, while the tourism industry gets a 5% funding increase. Additionally, operators must pay 1.13 per cent of the aforementioned 6.63 per cent share to clubs and athletes for brand usage.
Schools get 0.82 per cent, while 1 per cent will go to public technical high institutions. Tourism splits its 5 per cent allocation, with the Ministry of Tourism receiving 4 per cent and the Brazilian Tourist Board (Embratur) getting 1 per cent.