Brazil Online Betting: Ministry of Finance Hopes to Establish Secretariat for Industry Oversight

Brazil online betting – a lot of ambiguity and incomplete information – that’s how the landscape could be described in brief as of June 2023. Here are some of the most recent developments:

Taxation and Regulation of the Brazil Online Betting Sector Expected

The Ministry of Finance in Brazil is actively preparing to launch a new secretariat that will be solely dedicated to the supervision and regulation of online betting practices. Under the leadership of Fernando Haddad, this specialized secretariat will be responsible for addressing various aspects pertaining to the collection of digital commerce and online betting activities. With the impending introduction of a provisional measure (MP), the implementation of taxation measures specifically designed for the online betting sector is anticipated. The Federal Government’s decision to utilize a provisional measure for this sector is primarily motivated by the urgency to enforce the new regulations promptly and effectively.

Measures to Prevent Excessive Gambling Under Consideration

In addition to taxation and regulation, the Federal Government is exploring strategies to curb excessive gambling when it comes to the Brazil online betting case. The Ministry of Health is expected to play a role in this effort, potentially establishing a dedicated helpline for Brazilian players, similar to existing practices in other countries. Furthermore, the Unified Health System (SUS) may offer mental health support services to assist individuals affected by gambling addiction. These preventive measures are likely to be implemented in the later stages of the regulatory process.

Progress and Impetus from Sports Betting Scandal

Following a scandal involving match manipulation in Brazilian football, which was uncovered by the Public Ministry of Goiás, a Parliamentary Inquiry Committee (CPI) on sports betting was initiated. This scandal prompted expedited action and progress in the regulatory process. Punters had enticed several players to engage in misconduct, such as deliberately committing fouls or receiving cards, during matches in the Brazilian Championship Series A and B, as well as State Championships. Athletes involved in these incidents have faced penalties, including bans, suspensions, and fines within the sports field. However, they may also face legal consequences in the Common Court. The bookmakers and football clubs themselves have been considered victims of the manipulation scheme by the Public Ministry.

Optimistic Public Revenue Projections

In between, the special adviser to the Ministry of Finance of Brazil said that the regulation of Brazil online betting has the potential to generate revenues of R$ 3 to 6 billion for the government by 2024, which is 1.14 billion US$.

Earlier n April, the country’s minister Haddad had mentioned in an interview that the Federal Revenue forecasts a collection of between R$ 12 billion and R$ 15 billion. However, Manssur explained that this was a long-term estimate, considering the potential of the regulated market over the years.

In addition to processing the provisional legislation, the administration will propose a bill to Congress concerning “sports integrity.” This proposal proposes to establish a National Agency in charge of supervising the Brazilian sports betting sector. This agency will be in charge of ensuring the integrity of sports tournaments and avoiding result manipulation, as well as promoting transparency and fairness in the country’s sports betting business.

A Foggy Regulatory Future?

Brazil’s Ministry of Finance is taking proactive steps to regulate and supervise the online betting sector. Through the establishment of a dedicated secretariat, taxation and oversight of online betting activities will be implemented. Concurrently, measures to prevent excessive gambling are being explored, including potential helplines and mental health support services. The recent sports betting scandal has prompted swifter progress in the regulatory process, as investigations into match manipulation have shed light on the need for stronger controls and penalties.

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