The green light was given to the sports betting sector in Brazil. Today, July 25, 2023, the Federal Government published the Provisional Measure (MP nº 1.182/2023) on sports betting, which regulates the sector in the country.
From the approval of this measure, bookmakers will be taxed at 18%, and Income Tax will be charged on bets won above the exemption range (R$ 2,112 in 2023). With this, bookmakers will be taxed on almost 30% of the revenue obtained from betting on sites and physical points.
The greatest advantages of this process are attributed to the fact that companies in the sector will be able to establish themselves and expand in the market, which is one of the largest in the world. Brazilians have always had a passion for sports betting.
Furthermore, the Provisional Measure will ensure greater security for players, by determining that the sportsbook operators must promote actions to prevent problem gambling and curb any type of illegality that is identified.
One key takeaway from the MP is that sportsbook operators will have to pay an additional fee to the Government in order to legally provide services, but this has yet to be defined by the Ministry of Finance.
These new measures are the catalyst that the sector needs to establish the positive image of sports betting in Brazil, but it is only the first kick in a long game that it will have to face. Clarity is still required around a number of other measures, ordinances, decrees and any strategies necessary for sports betting to be taken seriously in Brazil.