On July 24th, Brazil’s President Lula da Silva finally signed Provisional Measure No. 1182, created to regulate and update the country’s online sports betting market, modifying laws created in more than 15 years ago.
The Brazilian Senate was given 120 days to finalise the details before this Provisional Measure comes into force. Over half of that time has now passed, with this deadline just a couple of months away.
The Provisional Measure outlines several key changes – the introduction of a new regulator, the National Secretariat for Games & Betting (SNJA), an operating licence fee of BRL30m (€5.49mn), licences valid for five years with possibility to renew, tax on GGR to be raised from 16% to 18%, players to pay 30% income tax on all prizes greater than BRL2,100 (€400) and a proportion of monies raised from taxation to be used to finance the national sports system.
A further and globally relevant element within the Provisional Measure states that, for the first time, sports betting operators not physically present in Brazil can now apply for the licence.
Whilst these regulations only relate to sports betting, and the wider iGaming industry still awaits clarification regarding the legal position for online casinos, the day that so many have been waiting for has almost arrived.
The third week in November will see a monumental step in the development and evolution of the Brazilian iGaming industry, which is certain to resonate throughout the whole of Latin America.