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Brazil might regulate sports betting

Brazil might regulate sports betting

According to the undersecretary of prizes and sweepstakes, Brazil must regulate sports betting by 2021.

by Academia   |   comments 0
Thursday, December 10 2020

In accordance with the plans drawn up by the Government, and according to the undersecretary of prizes and sweepstakes of the Ministry of Economy, Brazil must regulate sports betting until July 2021. The modality that was called "fixed quota", - modality in which has knowledge of how much the bettor can win from the start - it should be ready by next year. Thus, Waldir Eustáquio Marques Júnior, undersecretary of prizes and sweepstakes, pointed out that international investors should start operating in the country in the second half of 2021. In addition, it is expected that this new business can move up to US $ 77 million per year in Brazil.

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The government's plans have undergone some changes this year 2020. The law that allowed this type of betting modality within Brazil, has just turned two years old and has not yet been put into practice. The Government's plans in January were for the sector's rules to be ready by March, to be implemented in December, but it did not happen.
The recommendation of the Attorney General of the National Treasury is to use the "concession" model, taking the "authorization" model out of the thoughts. With this, sports betting will be part of the National Privatization Program and Investment Partnership Program (PP). The analysis of operations will be the responsibility of the entity of the National Bank for Economic and Social Development.

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The undersecretary of prizes and sweepstakes revealed in an interview that the Ministry of Economy and the National Bank for Economic and Social Development (NBESD) are about to sign a study contract as soon as possible: "The regulation should be ready next year. June or July. "
According to Marques Júnior, the approval of the exploitation of the "fixed quota" is not something of major importance. However, in order to have a possible change in the legislation of the subject matter, the NBESD must present results of the technical studies carried out. However, a point that draws attention and has been criticized is that the taxation of the business, in Brazil, would suffer a higher increase than abroad.
"It is not unfeasible. We are looked for by companies as the way things are [the legislation]. It is not a matter of urgency to change this point" - he reports.
According to information, from January to October, the government collected only US $ 2.58 billion with Lotteries, including social transfers with Income Tax, totaling US $ 1.26 billion. In comparison with 2019, the collection was US $ 3.23 billion and the income tax was US $ 1.53 billion.
The undersecretary reported that the decision of the Federal Supreme Court came "in good time". According to him, when liberating the exploration of lotteries by the States, it will help to leverage the country's revenues, removing the insecurity around sports betting.
As for changes in betting rules around horse racing (sweepstake), Marques Júnior said that the new information will be available in the first quarter of 2021. However, all programs had to be postponed due to the global crisis, but we can expect Brazil to regulate sports betting next year.
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