Ministry of Finance informs that sports betting MP will be ready in April
Photo: Rovena Rosa / Agência Brasil

The Ministry of Finance informed interested parties that, unless something imponderable happens in the coming weeks, the sports betting MP will be ready in April. The provisional measure is being prepared and has already had some details revealed by the minister, Fernando Haddad.

The technicians established that a rate of 18% to 20% will be applied on the GGR (Gross Gaming Revenue) of the companies. GGR is the amount that remains with operators after prizes paid to players are subtracted from total bets placed.

The Ministry of Finance also determined that bookmakers will be required to have their headquarters in Brazil to continue sponsoring sports teams, championships, leagues and entities. The licenses to authorize the operation should cost around R$ 30 million and will be valid for five years.

MP for sports betting will allow taxation of the sector

Last week, representatives of online sports betting sites started conversations with parliamentarians in the National Congress to discuss the taxation of the sector. According to information released by CNN, this taxation could generate annual revenue of R$ 10 billion for the public coffers, although these numbers are only preliminary estimates.

Talks were conducted with members of the Lula government’s allied base in both the Chamber and the Senate. During the discussions, the possibility was raised that these sites would pay a license fee to operate in Brazil for a period of five years, in addition to taxes that would affect the profits of the players.

Last week, the Brazilian Association of Sports Betting shared suggestions and analyzes with technicians from the Ministry of Finance, which is preparing a measure on the taxation of the sector. The group expressed criticism, for example, of the possibility that players who make profits pay taxes on them.

A 2018 law allowed the operation of bookmakers in Brazil. However, as the market is not yet regulated, companies operate their websites outside the country and do not pay taxes in Brazil. This condition should be changed with the launch of the MP for sports betting.