There’s good news for Brazilian sports betting fans. It’s been a long time coming but after several years, President Luiz Inácio Lula da Silva has signed regulations into law via a Provisional Measure that will control the sports betting industry.
The regulations will help to control both on-land and online sports betting for fans across the country. Fans can expect the sports betting industry to explode as the regulations come into play in the next couple of months.
Sports Betting in Brazil With Provisional Measure 1,182
The Provisional Measure 1,182 was first proposed back in 2018 but has only just become legitimate law in Brazil. But it’s worth noting that several amendments have been made to the original proposed laws. While they may not have much impact on the average bettor, understanding the law before you bet is vital – there’s still a little way to go before fans will be placing their first bets. The provisions include:
- Higher gross tax on gambling revenue
- Higher cost for licensing fees
- More stringent restrictions on marketing.
While esports betting in Brazil has been legal at offshore providers for some time, sports betting has now become legal for the first time in Brazil. As of July 2023, Law No. 13,756 has officially been passed. This has confirmed the intention for it to come into existence very soon. This means that the government will now need to set up a regulatory body that will have the power to assign licenses to betting providers hoping to operate in the area.
Effects of Regulated Sports Betting
Since the introduction of the new Brazilian president back in October 2022, the sports betting industry has been waiting with bated breath. The previous president, Jair Bolsonaro, never looked as favorably upon the betting industry as Silva. He certainly dragged his feet a little when it came to signing Provisional Measure 1,182. However, now that the PM has been signed, the country stands to profit substantially from the legislation.
Forecasts have predicted that the government could reasonably obtain up to 12 billion Brazilian reais from the regulations. Sports betting at offshore providers has become wildly popular in recent years. This has made it easier to predict how much the country stands to profit from the industry.
However, it has not yet been confirmed how the government intends to redistribute this income. The high earning potential has become a possibility since Brazil finalized its industry regulations. They have certainly been designed with player security in mind. They are there to dissuade less than legit providers from operating in Brazil.
When Will the Regulations Come into Law?
Despite the fact that the PM has officially been signed, there is still a possibility that none of these expected effects will come to pass. This is because the Brazilian Congress has the ability to block the regulations. It remains to be seen whether they will ensure that onshore sports and esports betting sites remain illegal.