PSD Party Senator Expresses Frustration with the Delays in Implementing the Law Regulating Sports Betting in Brazil

BRAZIL (May 3, 2024) — Senator Angelo Coronel, from the PSD party in Bahia, seems frustrated with the delays in implementing the law regulating sports betting in Brazil. He criticizes the Ministry of Finance for its sluggishness in collecting the grants for operating licenses, despite the estimated significant revenue of at least R$5 billion that could benefit the public coffers.

The senator views this potential revenue as a means to address other fiscal issues, such as compensating for payroll tax exemptions for certain sectors and small municipalities, which have faced legal challenges.

Although the law regulating the betting market was passed at the end of 2023, the appointment of the head of the Secretariat for Prizes and Betting, the Treasury body responsible for overseeing betting operators, only occurred recently. Senator Coronel expresses his frustration with this delay, emphasizing that Congress acted promptly in approving the legislation, but the government has been slow to implement it.

The taxation structure outlined in the law includes a 12% levy on bookmakers’ revenue and a 15% tax on punters’ winnings. These measures were part of Finance Minister Fernando Haddad’s plan to help achieve a zero fiscal deficit by 2024.

The Secretariat for Prizes and Betting is currently focused on drafting regulations governing the operation of the betting market in Brazil. Once these regulations are in place, interested legal entities will undergo evaluation, including criteria related to integrity and prevention of fraud. Over 130 companies have expressed interest in operating in the Brazilian market.

It’s highlighted that the law provides legal entities operating in Brazil with a minimum of six months to comply with the regulatory provisions once they are established. Senator Coronel hopes that the newly appointed Secretary for Prizes and Betting, Regis Dudena, will expedite the regulatory process.

SOURCE: LI Contributor.