This Provisional Measure also outlines updates pertaining to sports betting adverts and any restraints as implemented by the jurisdiction in general. Specifically, the prohibition of unlicensed sportsbooks will be enforced with a heavier hand.
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Considering the wide implications of the Provisional Measure as it pertains to both physical and online sports betting operations, this is a significant moment in Brazil for many people.
This is a document which has been drafted by the Ministry of Finance, along with other relevant stakeholders including the Ministry of Sports.
In the past, Law 13.756/18 was created to allow sports betting, for a period of just two years, although the option was to extend for another two years. But the legislation was not approved by the Bolsonaro government as it needed to be in December 2022, and indeed the whole proposal never ended up coming into being.
The current sports betting Provisional Measure is proposed, in no small part, from the fact that Brazil is losing out around R$6 billion in taxes from not having sports betting within the country. It will need to be debated.
In short, it is a set of stipulations which explains that betting operators must have a financial base in Brazil including a business structure, that they must pay a number of different subsidies to the government, and that they must have a minimum capital to operate. The money that travels through sports betting must also go through banks that are approved by Brazil’s central bank.
There are specifics in the Provisional Measure for taxation and the framework within it has been created with the UK’s regulatory rules in mind, since they are considered the most trustworthy in the world. The Provisional Measure also covers advertising restrictions, anti-money laundering measures, and measures regarding match-fixing.
If the Provisional Measure is published by the government, it is now valid for a time period of just 60 days, which can then be extended for a further 60 days. Within this period, the content of the measure is discussed in the Congress in the government system, and the government can request changes, deletions, and additions to the text. The government will carefully examine the terms and make changes. The government must do this within the time period, or it will expire.
If it advances in Congress and is eventually passed by the government, we will see sports betting, both in physical venues and online, become legal in Brazil.
Already there are opponents to the Provisional Measure. Some say that the match-fixing in Series A and B of the Brazilian Football Championship is a clear indication that sports betting will help corruption rather than hinder it. In terms of sports betting, this would require stricter monitoring of even players in the competitions to ensure that the games stay in repute and the system does not fail in favor of corruption.
The Brazil Institute for Responsible Gaming (IBJR) also warns that there are unnecessary market risks attached to the proposals, and are concerned about the high taxes involved. The IBJR is comprised of representatives from large gambling companies worldwide including bet365 and Entain, and the Institute has instead set forward its own framework for consideration, too.
It is still not known what will be the outcome of the Provisional Measure, although it seems more likely that sports betting will be enshrined in law than when Bolsonaro was in power. The Provisional Measure was a shock for many, as its introduction and consideration period are both very fast. We wait to see what will happen and hope that the right decision is made for the people of Brazil.
