Fixed odds sports betting is regulated by the government – News of Brazil
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A provisional measure (MP) edited by President Luiz Inácio Lula da Silva and published in the Official Gazette this Tuesday (25) begins the process of regulating fixed-quota sports betting, also known as the bet market. Created in 2018 by Law 13,756, the market, with an annual revenue potential of up to R$12 billion, remained unregulated for four years.
The main change is the concession to participate in this market, now subject to approval by the Ministry of Finance, with no limit on grants, provided the company is established in national territory. The Ministry of Finance informed that a secretariat will be created by means of a decree that will be responsible for analyzing the documents, accrediting the companies and maintaining control over the betting market.
The president of the National Association of Games and Lotteries (ANJL), Wesley Cardia, said that, although late, the regulation is important to bring security to the market. “In the country, companies that seek the best international practices, in line with regulation and fair taxation, and those opportunists, who, behind the scenes, hope that nothing changes, to continue operating outside the rules”, said Cardia.
With the changes, betting companies will have to allocate 18% of the revenue obtained from betting, after discounting the payment of prizes and taxes, the so-called Gross Gaming Revenue (GGR). Player prizes will also be taxed at 30% by Income Tax, from R$ 2,112.
The GGR collection will be divided, with 2.55% going to the National Public Security Fund, for actions to combat betting manipulation and illegalities in the market; 0.82% for education, 1.63% for National Sports System entities, in exchange for the use of name, brands, emblems and anthems, 10% for social security, 3% for the Ministry of Sports.
According to Wesley, companies see regulation positively, as long as all market members participate in the collection and that the activities of illegal companies are curbed. “We have large international companies that could not operate in the market due to lack of regulation. Enabled, they will be able to come, create jobs, generate income and make the market safer and more transparent”, he says.
Another important change that the MP brings is the ban on betting companies from participating in the market for rights to sporting events held in the country, such as transmission, distribution or any form of exhibition. This is one of the measures that seek to curb the manipulation of results, as highlighted by the Minister of Sports, Ana Moser. “It is yet another fundamental initiative by the Brazilian government which, by regulating sports betting, will curb match-fixing and, above all, preserve sporting integrity.”
An advertising and marketing counterpart will also be needed for awareness and prevention of pathological gambling disorder. “This is the type of extra expense that is within the principles of our association, as we work to prevent the participation of minors in gambling, even by application, and also to prevent pathologies linked to gambling.”
Source: Brazil Agency
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