The South American nation of Brazil is nearing the authorization of wagers on sporting events, a development poised to unleash a market worth billions. The lower chamber of the Brazilian legislature recently approved legislation concerning lotteries that encompasses provisions for both digital and in-person sports betting.
This legislative measure, designated as “Provisional Measure (PM) 846/2018,” primarily centers on the allocation of lottery proceeds among public security, artistic endeavors, and societal initiatives, yet it strategically incorporates the green light for sports wagering. The administration is demonstrating urgency, granting the Ministry of Finance a two-year timeframe to formulate regulations and commence the issuance of licenses.
Advocates of the legislation, including Congressman Flexa Ribeiro, highlight the substantial potential of this market. They project that Brazilians are currently engaging in approximately $1.14 billion US dollars in illicit betting annually. The legislation sailed through with overwhelming backing, encountering only a solitary dissenting vote.
The specifics of the bill delineate the framework for this nascent market. Brick-and-mortar betting establishments will be mandated to return a minimum of 80% of all wagers placed to participants, with a ceiling of 14% allocated to operators. The remaining 6% is designated for governmental programs. Online platforms operate under a slightly modified structure, disbursing 89% to players and retaining a maximum of 8%, with the residual portion directed to the government.
The legislation awaits final ratification from the Senate, which has until November 28th to reach a decision. Nevertheless, with influential figures such as incoming Justice Minister Sergio Moro expressing their endorsement, the prospects for sports betting in Brazil appear promising. This advancement marks a positive shift from earlier in the year when the trajectory toward legalization seemed considerably less clear.
In early 2014, a proposed law in Brazil, designated PLS 186/2014, sought to make legal different types of wagering, such as bingo, internet sports wagering, and physical casinos. Although the suggestion created considerable excitement among Brazilian and global gaming entities, it did not ultimately succeed. The Senate body rejected it decisively, with 13 senators against and only 2 supporting.
The legislation suggested that the national government of Brazil would have ultimate authority in overseeing the gaming sector, with the Finance Ministry being responsible for selecting a particular federal organization to manage permits and activities.
