South America’s largest nation is emulating the European Union by modifying its regulations on wagering on athletic events.
Legislation enacted in late 2018, specifically Law No. 13,756/2018, has governed sports betting in Brazil. Recently, the lower house of parliament approved some significant adjustments.
The most noteworthy alteration? The method by which the government levies taxes on gaming entities. Rather than taking a percentage of total income, the emphasis is shifting to taxing the net gaming revenue (NGR) – the earnings remaining after winnings are paid out.
What’s the rationale for this change? Legislators contend that it will foster a more resilient and enduring sports betting sector. This strategy is already prevalent in Europe and is viewed as a means to guarantee a consistent flow of funds for vital public initiatives.
Regarding funding, the amended legislation specifies how this fresh tax income will be allocated. A considerable portion – 95% – will be directed towards fundamental government services such as healthcare and education. A share is also designated for athletic associations and law enforcement.
Congressman Moses Rodrigues, a prominent advocate for these modifications, emphasized the effectiveness of the NGR model in Europe. He posits that it incentivizes bettors to select domestic providers, ultimately bolstering the Brazilian market.
Beyond reshaping the sports betting landscape, the Chamber of Deputies also ratified a provisional measure, Provisional Measure 1034/21, which raises taxes on financial entities and the chemical sector.
During a ballot regarding the proposed legislation, legislators on the left also attempted to eliminate Section 6, which pertains to wagering on athletic events. However, the proposed change was defeated by a significant margin of 291 to 127. This demonstrates the strong commitment of numerous Brazilian legislators to ushering their nation into the contemporary era of sports wagering.
Just in the preceding month, the Rio de Janeiro region commenced the incorporation of novel wagering choices into its state-run lottery offerings. Their aim is to entice fresh enterprises capable of providing superior wagering and lottery products. It appears that Brazil is on the cusp of a significant transformation in its gambling landscape.
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