Brazil learning from Europe with changes to its sports betting laws

Changes to Law No. 13,756/2018 have been approved by the Plenary of the Chamber of Deputies of Brazil.

The law has regulated sports betting in Brazil since December 2018 and the new changes include altering the amount institutions will receive from the gross gaming revenue (GGR) of betting operators.

According to lawmakers, the objective is to improve sports legislation by changing the tax base to GGR, as the tax collection from physical and virtual sports betting operations will be used for bonuses.

It will also redirect the money taken from operators to social security, health and education; 95% of the proceeds will cover costs and expenses of the state entity.

In total, 0.82% will go into school organisations, 2.55% will go to the National Public Security Force (FNSP) and 1.63% to Brazilian sports entities that give the rights to the use of their names, brands and symbols.

Deputy Moses Rodrigues said: “Experience in Europe shows that it is better to adopt the operator's gross profit as a basis, providing stable flows of public revenue and prizes and making bettors use the services of local operators.”

In addition to the changes in sports betting, the chamber also approved the provisional measure 1034/21, which governs the increase in tax of financial institutions and the chemical industry.

During the vote on the bill, left wing politicians also proposed to remove article 6, which deals with sports betting; this was rejected by 291 votes to 127.

It was only last month that Rio de Janeiro started to include new gambling products within the Loteria do Estado do Rio de Janeiro portfolio, in the hopes of attracting new companies that can provide enhanced betting and lottery products.


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