The long and winding road to regulating sports betting in Brazil is at a crossroads. With Provisional Measure (PM) No 1,182 in the limelight, lawmakers have been vigorously analyzing and modifying the presidential decree. The measure has entered a critical phase where rumors are circulating that it could ultimately fail in the National Congress.
Overview of the Provisional Measure (PM) No 1,182
The long and winding road to regulating sports betting in Brazil is at a crossroads. With Provisional Measure (PM) No 1,182 in the limelight, lawmakers have been vigorously analyzing and modifying the presidential decree. The measure has entered a critical phase where rumors are circulating that it could ultimately fail in the National Congress.
Sports betting in Brazil is in a phase of transformation. President Luiz Inácio Lula da Silva initiated the measure to regulate sports betting in the world’s seventh most populous country. But, is the journey about to hit a roadblock? Or is it just another twist in a long-running regulatory process?
Jonathan Archer
Last week, the lawmakers proposed 244 amendments, including 57 by senators. These amendments vary widely and need Congress’ approval to become law.
The tax rate has been a hot topic, with amendments proposing various changes. While some senators sought to increase the tax on operators to 22% or even 23%, others like Newton Cardoso Jr. proposed reducing the sports betting tax to 11%.
Several senators debated the restriction of sports betting advertising in Brazil. The most comprehensive proposal came from NOVO senator Eduardo Girão, aiming for a complete ban on sports betting advertising.
The measure received mostly negative feedback from the industry, with criticisms centered on the high tax rate, payment issues, and potential regulatory risk.
President Lula has been instrumental in pushing the measure forward but the executive posting requires approval from the National Congress within a 120-day period. The situation emphasizes a potential clash between the government and the lawmakers.
The Legal Perspective
Legal expert Neil Montgomery highlighted how Congress has been playing second fiddle in the process. He also predicted that Brazilians wouldn’t be placing bets with regulated operators anytime soon, projecting a market start in 2024. The next few months are key in determining whether the measure will pass or fail. With mixed opinions and significant proposed changes, the outcome remains uncertain.
A failure would mean a step backward, while success would reshape the industry and make Brazil an attractive market for operators. Even if approved, various administrative hurdles and amendments mean that the actual implementation might not happen before 2024.
The fate of sports betting in Brazil hangs in the balance, with the provisional measure facing both support and opposition in Congress. The coming months are crucial, and the decisions made will shape the future of the betting industry in the country. Whether Brazil will embrace regulated sports betting or continue in ambiguity is a high-stakes gamble, with the outcome yet to be revealed.
