Brazil Poised to Legalize Sports Betting: A New Era for Gaming?

The South American nation is on the verge of authorizing wagering on athletic events! Legislation encompassing provisions for such activities, linked to the lottery system, has secured approval from the lower legislative body. This legislative proposal, designated as PM 846/2018, delineates the allocation of lottery proceeds while simultaneously establishing a framework for both internet-based and physical sports betting.

The Treasury department now possesses a timeframe of twenty-four months to formulate the requisite regulations and initiate the issuance of permits. Legislator Flexa Ribeiro, the architect of the bill, projects that the Brazilian digital sports wagering sector could reach a staggering value of $11.4 billion!

The bill garnered widespread backing, with a solitary legislator, Gilberto Nascimento from the Socialism and Liberty Party, casting a dissenting vote.

The established rules mandate that physical operators must distribute a minimum of 80% of wagers back to patrons, retaining a maximum of 14% as revenue and allocating 6% towards governmental initiatives. Online operators would adhere to a slightly modified structure, disbursing 89% to participants, retaining a maximum of 8%, with the remaining portion directed to the government.

The subsequent phase involves the upper legislative chamber’s endorsement of the measure by November 28th. Brazil’s incoming Attorney General, Sergio Moro, has already expressed his approval, signaling a promising outlook for the future of sports betting in Brazil! This marks a notable shift following some earlier hurdles this year and has the potential to reshape the nation’s landscape.

In the third month of 2014, a proposed piece of legislation in Brazil’s Senate, known as PLS 186/2014, caused quite a stir among those involved in gaming. The legislation aimed to make various gambling activities legal, such as online wagering on sports, bingo, and casino establishments. Companies involved in gaming on a global scale were especially keen on the possibilities presented by the Brazilian market. However, the bill was ultimately rejected by a Senate committee, with 13 senators voting against it and a mere 2 in support.

The suggested law detailed a framework where the ultimate authority to grant licenses for gambling enterprises would reside with the Brazilian federal government. It also empowered the Finance Ministry to select the federal bodies responsible for overseeing and licensing the industry.