After much waiting, Brazil sees a new door open with the signing, this Tuesday (25), of the PM for sports betting, which establishes the regulation of the sector in Brazil.
The rules are already in effect, however, to remain valid, they will need to undergo an analysis by the National Congress within 120 days.
The PM amends Federal Law No. 13,756, published in 2018, which regulates the exploitation of fixed-quota lotteries by the Union, also known as “bets”.
Therefore, the iGaming Brazil portal heard the opinion of specialists in specific laws for sports betting, such as Udo Seckelmann (Bichara & Motta Advogados, Neil Montgomery (Montgomery & Associados), Luiz Felipe Maia (FYMSA) and Witoldo Hendrich Jr. (Hendrich Advogados).
The idea was to find out what each of these lawyers thinks about the new PM and what it means for Brazil.
So we ask: What are the pros and cons?
Will it be better than the first version of May that proposed a 16% tax on the GGR?
With the Ministry of Finance granting authorization for betting to operate from now on, without restriction on the number of licenses, will it be better?
Today we publish Udo Seckelmann’s opinion, check out the full video
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 the revenue for the “bets” to maintain operations.
The fees were distributed as follows:
- 10% social security contribution;
- 0.82% for basic education;
- 2.55% to the National Public Security Fund;
- 1.63% to clubs and athletes whose names and symbols are linked to bets;
- 3% to the Ministry of Sports.
In May, the Ministry of Finance had released a proposal that provided for 16% in rates.
In the PM, the government increased the transfer to the Ministry of Sport, from 1% to 3%, which raised taxation to 18%.
Under the 2018 law, taxation was up to 5% on company revenue after payment of prizes, income tax on prizes and social security contribution (which had a rate of 0.10% for physical means and 0.05% for virtual bets).
Ban on betting
The provisional measure determines that the following people are prohibited from participating in sports betting:
- public agent that acts in the inspection of the sector at the federal level;
- under 18 years old;
- persons with access to computerized fixed odds lottery systems;
- people who may have an influence on the results of the games, such as coaches, referees and athletes;
- registered in the national credit protection registries.
In the case of public supervisory agents, people with access to bets systems and those who can influence the results of games, the prohibition also extends to spouses, partners and family members up to the second degree.
Next, we will publish the opinion of other experts on the subject.
To fully understand the new PM signed today by the Lula Government, visit our website.