Brazil continues to draw towards a full legalization of its sports betting industry, although the steps are tentative and somewhat slow. However, lawmakers seem to be quickening their pace, and an approved lottery legislation has already cleared the lower house. What’s next for Brazil’s incipient betting industry?
From Lottery to Sports Bets – Brazil Leads the Way
Brazil’s lower legislative body has just voted in a piece of legislation that would allow lotteries, and by extension, sports betting facilities to operate in the country. The vote took place on Tuesday, November 20, with the Chamber of Deputies voting on a draft known as Provisional Measure (PM) 846/2018.
The said piece of legislation has been drafted having the country’s interest foremost, outlining the course for the development of betting and lottery activities, but also explicitly specifying that the bulk of the funds will be allocated to various public sectors that have to do with education, cultural and social activities.
However, apart from the lotteries, the government is now determined to introduce land-based sports betting venues, which will allow it to make full good use of even more revenue that will be disbursed to prop up Brazil’s economy.
The law has been voted unanimously with no-one opposed against the new bill. One MP, however, Gilberto Nascimento from the Social Christian Party, has expressed his concerns that the legislation could potentially lead to a generation of “addicts”.
His colleagues from Brazil’s law-making body, though, seemed to focus on the potential good that could come out of the bill as opposed to the unfounded fears. Now, the ice seems to be cracking up, and the 1946 gambling ban will be finally lifted up.
The Provisional Measure’s Lasting Taxes
The Provisional Measure will seek to levy gambling and betting operations with high taxes. Lotteries will need to disburse back at least 80% of their total handle and they can’t generate more than 14% in gross revenue, with 6% going directly to the government’s approved programs that have to do directly with the aforementioned sectors – culture, education and other social initiatives.
Now that the provisional measure has been passed, the Brazilian Ministry of Finance will have to start working on a legal framework that will chart the course for the entire industry in the years to come. And while the Ministry is busy deliberating the details and giving them a legal foundation, the bill will have to pass the next legal instance – Brazil’s Senate.
Given the circumstances, things are most definitely looking up for Brazil’s betting and gambling industry, after any attempts to resuscitate the industry were put on the backburner until 2019 in the very least.
At the same time, Brazil’s Loterias Caixa has been doing quite well, perhaps even hinting at the potential benefits and windfall the government could rake in by legalizing the sectors sooner. Launched back in August, the lottery has generated $12.3 million in pure ticket sales, and it’s one of the only bodies allowed to operate in the country.
Naturally, Brazil will also have to address the concerns of Mr. Nascimento and also establish its own version of a Gambling Commission and even predict that some people could quickly start betting well beyond their purchasing power.
Not to mention that the country is already familiar with crooked sports executives, particularly as part of FIFA’s raging corruption scandal that claimed lives and saw people imprisoned.