Provisional Measure for Sports Betting is Launched by the Federal Government
Bet companies, or sports betting, will pay taxes to operate in the country.
(July 27, 2023) — On the radar of the Federal Government , the regulation of sports betting (and its taxation) has arrived! Published in the Official Gazette last Tuesday (07/24), Provisional Measure No.1,182 (MP) regulates sports betting and provides for an 18% tax on the “Gross Gaming Revenue” (GGR).
GGR is the income earned from all games immediately after payment of prizes to players and income tax (IR) on the prize pool. With the Provisional Measuree ffective from the date of publication, the rules will need to be analyzed within 120 days by Congress in order not to lose their validity.
According to the projection of the Ministry of Finance , the Government expects to raise R$ 2 billion by 2024 with the regulation. For the coming years, the estimated receipt should vary between R$ 6 billion and R$ 12 billion.
It is important to point out that the prohibition also extends to spouses, partners and family members up to the second degree of the first three listed (public agent, people with access to the systems and who have influence on the results).
Deadline for withdrawing the award established in the Provisional Measure
Did you win the bet? Schedule to withdraw the amount in a maximum of 3 months!
If the player wins the award and does not withdraw it within 90 days, the amounts will be reverted to Student Financing (Fies) until July 2028. After that date, the resources will go to the National Treasury.
And the MP rules did not stop there. Guidance for companies in the sector has also been published.
Check out what was determined for companies that operate and operate with bets (sports betting) :
- Partners and shareholders of bets may not act as directors or have participation in sports institutions
- Companies must report to the Ministry of Finance any event suspected of manipulation of results
- In addition, companies will need to promote actions to raise awareness among gamblers about gambling addiction (the Ministry of Finance will later regulate marketing actions with this theme)
- Are prohibited from acquiring, licensing or financing the acquisition of rights to sporting events held in Brazil for broadcast, distribution or any other form of exhibition
Bonus: Companies that operate with sports betting without authorization from the Ministry of Finance or that offer “entertainment” in violation of the law may be punished with fines that can vary between 0.1% and 20% on the company’s collection and with a limit of BRL 2 billion per infraction.
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By: Raquel Meirasports betting, Ministry of Finance, bookmakers, Provisional Measure