Brazil Passes Amended Sports Betting Legislation
Efforts to create a regulated sports betting market in Brazil are making progress. The Chamber of Deputies, which has been pushing for regulation, has passed a revised bill that includes clearer guidelines for the industry.
This updated legislation covers important aspects such as how revenue will be distributed, what operators have to provide, and what restrictions will apply. The Senate will now consider the bill, but there's no indication of any expansion of gambling yet.
Only companies with headquarters and administration in the country can apply for a sports betting license. This requirement had been talked about in previous versions of the legislation and is now officially part of the bill, pending Senate approval.
A member of the applying company must also have verifiable experience and knowledge in gaming operations.
A sports betting license will cost up to BRL30 million (US$6.1 million), and only those who meet the requirements will be granted one. The payment has to be made within 30 days of approval.
The license lasts up to three years, is non-negotiable and non-transferable, and is granted at the discretion of the Ministry of Finance. If the licensed company goes through a merger or there's a change in its shareholder structure, the Ministry will assess, on a case-by-case basis, if the license remains valid.
Revenue Distribution
Under the bill, licensed operators will keep 82% of their gross revenues (after deducting prizes and income tax). Previously, they were allowed to keep 95%.
Instead of 10% of the tax revenue going to the Social Security Administration, as some lawmakers suggested, the sector will now keep 2%. Brazil's education system will receive 1.82%, while sports organizations will secure 6.63% of the income. The tourism industry will get 5% more funding.
Operators will need to pay clubs and athletes for using their names, brands, and other symbols. Out of the 6.63% share, 1.13% must be used for this.
Another 0.5% of the amount will go to official state-level sports organizations. Half of this will be shared among the state's municipalities based on their populations.
The education system will allocate 0.82% to schools that have met national assessment targets for early childhood, elementary, or secondary education. 1% will be given to public technical high schools.
The Ministry of Tourism and Embratur, the Brazilian Tourist Board, will share the 5% increase in funding for tourism. 4% will go to the Ministry of Tourism, and the remaining 1% will go to Embratur.
The information is based on the latest available data and could change as the legislation moves forward.
Advertising Restrictions
The bill includes provisions about advertising. Only licensed operators can advertise in Brazil.
Advertisements cannot make unfounded claims about winning odds or potential earnings for bettors. Use of celebrities or personalities to suggest betting as a way to get rich or achieve social status is forbidden.
Currently, there's no specification about when advertising might be restricted, but the new bill implies this could happen right away.
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