Brazil’s Sports Betting

In July 2023, Brazil took a significant step in regulating sports betting with the passage of Provisional Measure No. 1,182/2023 (Sports Betting PM). This legislation brings substantial changes to the existing legal framework outlined in Law No. 13,756/2018, which governs sports betting in both online and offline markets.

Key Changes Introduced by the Sports Betting PM:

The most notable revisions pertain to fixed-odds betting, a form of gambling where bets are placed on predetermined odds for the outcome of sporting events. These odds are set by bookmakers, taking into account various factors and reflecting the likelihood of specific outcomes. The Sports Betting PM provides a regulatory framework for fixed-odds betting, a crucial development given the popularity of this form of gambling in Brazil.

Background and Necessity:

Prior to the Sports Betting PM, fixed-odds bets were technically legal under Law No. 13,756/2018, but lacked a comprehensive regulatory structure. Although the Ministry of Finance was tasked with establishing regulations by December 2022, progress had been slow, leading betting companies to operate within Brazil’s borders without a physical presence.

Fixed-odds betting has a deep-rooted tradition and popularity in Brazil, making the Sports Betting PM a long-awaited and welcome measure.

Legislative Process:

Under the Brazilian Constitution, provisional measures carry the force of law and can only be issued by the President of the Republic in cases of relevance and urgency. Such measures must be promptly submitted to the National Congress and have a 120-day duration, with the possibility of a 60-day extension. During this period, the Sports Betting PM will undergo scrutiny in both the House of Representatives and the Senate. It will be thoroughly reviewed, and members of Congress may propose amendments. Upon approval, with or without changes, the Sports Betting PM will become a permanent law. Alternatively, if not approved, a legislative decree will govern the legal consequences.

Objectives and Impact:

The Sports Betting PM mandates that operating agents, including betting companies, obtain licenses and adhere to specific regulations to ensure a secure and equitable betting environment for users. The primary goals of this legislation align with global practices, aiming to generate tax revenue for the government from gambling activities while increasing funding for social welfare, public safety, and education.

In essence, Brazil’s new sports betting legislation represents a crucial milestone in the effective regulation of sports betting in the country. The Sports Betting PM aims to create a safer betting environment by fostering accountability, fairness, transparency, and responsibility within the industry. Simultaneously, it seeks to contribute to the nation’s revenue and support critical social initiatives.

This legislation not only provides a legal framework for fixed-odds betting but also signifies Brazil’s commitment to regulating and benefiting from the growing sports betting market while safeguarding the interests of its citizens.

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