After a long wait, Brazil is witnessing the opening of a new opportunity with the signing, on the morning of last Tuesday (25), of the Provisional Measure for sports betting, which establishes the regulation of this sector in the country.
The rules are already in force, but the National Congress has a period of up to 120 days to analyze and approve them.
The Provisional Measure amends Federal Law No. 13,756, published in 2018, which regulates the exploitation of fixed-quota lotteries by the Union, also known as “bets”.
The iGaming Brasil portal heard the opinion of specialists in specific laws for sports betting, such as Neil Montgomery (Montgomery & Associados), who follows the theme closely and knows the subject in depth.
iGaming Brazil also heard the opinion of Udo Seckelmann (Bichara & Motta Advogados), among others.
The objective was to know the opinions of each of the lawyers specialized in the subject on the new MP and what it represents for Brazil.
We ask: What are the positives and negatives?
Will it be better than the first previously published version, which proposed a 16% rate on GGR, for example? And what is the status of licenses now?
With the Ministry of Finance granting authorization for betting to operate from now on, with no restriction on the number of licenses, will this be an improvement?
Today we publish the opinion of Neil Montgomery.
Check out the video with Neil Montgomery in full
Understand better what happens with the new MP:
Tax
The measure establishes that companies will be taxed at 18% on the GGR, leaving 82% of revenue for “bets” to maintain their operations.
The fees were distributed as follows:
- 10% social security contribution;
- 0.82% for basic education;
- 2.55% for the National Public Security Fund;
- 1.63% for clubs and athletes whose names and symbols are linked to bets;
- 3% for the Ministry of Sport.
In May, the Ministry of Finance had released a proposal that provided for 16% in rates. In the MP, the government increased the transfer to the Ministry of Sport, from 1% to 3%, which raised taxation to 18%.
According to the 2018 law, taxation was up to 5% on company revenue after payment of prizes, income tax on prizes and contribution to social security (which had a rate of 0.10% for physical bets and 0.05% for virtual bets).
Prohibition on betting:
The provisional measure determines that the following people are prohibited from participating in sports betting:
- Public agents who act in the inspection of the sector at the federal level;
- Minors under 18 years of age;
- Persons with access to computerized fixed odds betting lottery systems;
- People who may have an influence on the results of the games, such as coaches, referees and athletes;
- Enrolled in national credit protection registers.
In the case of public inspection agents, people with access to the “bets” systems and those who can influence the results of the games, the prohibition also extends to spouses, partners and family members up to the second degree.
Soon, we will publish the opinion of other experts on the subject.
To fully understand the new MP signed today by the Lula Government, visit our website.
