Luiz Inácio Lula da Silva’s government intends to put into practice a proposal published during the transition period by issuing a provisional measure (MP) in the coming weeks to regulate sports betting in Brazil. This segment has grown rapidly since it was legalized in the country in 2018. The plan includes making it compulsory for bookmakers to be based in Brazil and comply with current laws, as well as paying taxes and a fee worth around 30 million reais.
The proposal is part of the initiative led by Finance Minister Fernando Haddad to increase public revenue. In a recent interview with GloboNews, Haddad said that the government intends to raise up to R$15 billion from taxes on the sector. However, experts have suggested that the figure could be lower than that.
Currently, sports betting companies sponsor 19 of the 20 clubs competing in Serie A of the Brazilian Championship, as well as federations, competitions and leagues, mainly in soccer. The industry generates several billion reais in revenue every year.
The Brazilian Football Confederation (CBF) asks to be part of the debate on sports betting
Brazilian Football Confederation – glassdoor.comThe teams and the Brazilian Football Confederation (CBF) are asking to be included in the discussions surrounding the regulation of sports betting in Brazil. They are concerned about possible reductions in revenue with the launch of the provisional measure (MP). According to O Globo, some sports leaders fear that the MP will harm their performance.
In this week’s episode of the Ao Ponto podcast, reporter Athos Moura, from the Sports section, explains some of the main points that should be addressed in the government’s provisional measure. He also discusses why the CBF’s request to increase its share of the profits generated by betting has generated criticism from all sides.
This is because the CBF is claiming a greater share of gross revenue than that established by Law 13.756/18. Brazilian sports organizations that allow bookmakers to use their brands are entitled to receive 1.63% of the net revenue generated by these companies. The CBF, however, is asking for 4% of gross revenue.
In addition, Globo columnist Rodrigo Capelo explains how bookmakers have grown so much in Brazil and how regulating sports betting can help prevent irregularities such as match-fixing.