Following more than a decade of protracted and sometimes stalled discussions, debates and reviews, Brazil has formally passed what appears to be the nation’s first regulatory processes that paves the way for licensed sports betting. It was signed yesterday by outgoing President Michel Temer of the Brasil-MDB party.
Temer formally signed the decree of bill MP-846 approved by the Senate this December. Within its mandate, MP-846 seeks to restructure Brazil’s national framework’s for lottery and gambling provisions.
Although primarily lottery focused in its design, with stakeholders focusing on revamping Brazil Lottery CAIXA distributions and functions, MP-846 seeks to introduce the nation’s first provisions for a licensed sports betting framework (yet to be finalized).
The Brazilian government will attempt to craft its first legislation for land-based and online sports betting services, which will be overseen by the Federal Ministry of Finance.
As previously reported by SBCAmericas, land-based operators will have their gross revenue capped at 14%, with an enforced pay-out of at least 80% handle to bettors, alongside mandated payments to Government-funded programs receiving the remaining six per cent.
For potential online incumbents, their gross revenue will be limited to just eight per cent, with 89% of the handle going to bettors, and the government will take the remaining 3%.
Industry leadership will be monitoring the movements of Jair Bolsonaro’s, PSL party, the governing novices who will take control of Brazil’s government from 1 January 2019 – awaiting much-needed information on licensing conditions, further regulations and operational arrangements.
While there is a present mandate for the PSL to open-up South America’s largest sports market, betting stakeholders’ excitement should remain composed, as MP-846 policy remains limited with regards to actual sports betting provisions, and may require a further two years to fulfill.
Although reported as a step in the right direction, with MP-846 gaining the support the Brazilian Ministries for Justice and Social Security, it remains to be seen whether MP-846 will follow the same fate as its failed predecessor, Bill 186.