Taking lessons from Europe, the law that has been regulating sports betting in Brazil since December 2018 is set to get an upgrade
Provisional Measure 1,034/2021, that regulates tax regimes for sports betting, as well as changes to Law No. 13,756/2018, have been approved by the Plenary of the Chamber of Deputies of Brazil.
Congressman Moses Rodrigues proposed the modifications include a change in art. 30 Law No. 13,756/2018, which has regulated sports betting since December 2018. In art. 6 of the Provisional Measure, the modifications set the percentages that state institutions will acquire from the GGR (on top of the tax on the licence adjudication).
He shared: “ The goal is to improve sports legislation by changing the tax base to GGR”. By changing the tax base to GGR, lawmakers hope it will improve sports legislation in Brazil. Moreover, the tax collected from both physical and virtual sports betting operations will go towards bonuses and contribute to funds for social security, health and education.
Deputy Moses Rodrigues spoke on the influence of regulation in Europe in approaching Brazil stating:
Experience in Europe shows that it is better to adopt the operator's gross profit as a basis, providing stable flows of public revenue and prizes and making bettors use the services of local operators.
All in all, 95% of the money will cover costs and expanses of the state entity developed to control the gaming and betting sector, 0.82% will go into school organisations, 2.55% will go to the National Public Security Force (FNSP), and 1.63% will go to Brazilian sports entities for the right to use their brands, names and symbols.
Currently, the bill is waiting final approval from the Senate.
Source: SBC Americas
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