Felipe Carreras should report sports betting PM (1)
Felipe Carreras should report sports betting PM

According to information gathered by Poder360, deputy Felipe Carreras (PSB-PE) should be the rapporteur for the MP on sports betting, which regulates the segment in Brazil. Carreras is close to the mayor, Arthur Lira (PP-AL), and has already acted as rapporteur for the project that legalized these bets.

The government of President Luiz Inácio Lula da Silva (PT) is preparing a text to regulate and tax the sector. One of the Executive’s proposals is to establish a rate of 15% on the GGR (Gross Gaming Revenue), that is, the gross collection of sports betting companies, discounting the amount paid in prizes to bettors.

The plan to regulate sports betting in Brazil

One of the measures in the plan to regulate sports betting in Brazil is to require bookmakers to be headquartered in the country and comply with local laws, in addition to paying taxes and a fee of around 30 million reais.

This initiative is led by the Minister of Finance, Fernando Haddad, with the aim of increasing public revenue. In a recent interview with GloboNews, Haddad stated that the government intends to collect up to R$ 15 billion from taxation in the sector, although specialists believe that the amount could be less.

Currently, sports betting companies sponsor 19 of the 20 clubs that compete in Serie A of the Brazilian Championship, in addition to federations, competitions and leagues, mainly in football, and move billions of reais every year.

How can regulation impact clubs?

During this semester, there may be a significant change in football sponsorships due to the implementation of the new rules established by the sector regulation project and by the sports betting MP, which define which companies will be able to operate in Brazil. The sports betting sector is currently crucial for clubs and competitions in the country.

The project to regulate sports betting can provide a new source of funding for clubs in Brazil. According to sources at the Ministry of Finance, the Provisional Measure that will be published soon will also address the transfer of funds to clubs, federations and confederations.

For this, Law 13.756/1998, also known as the National Public Security Fund Law or Lottery Law, will be used. This law establishes the distribution of amounts collected from lotteries and determines that 1.63% of the value of online bets must be allocated to Brazilian sports entities that allow the use of their denominations, brands, emblems, anthems, symbols and the like for dissemination and execution of the fixed odds lottery.