Sports betting PM may be published in June
Photo: Joédson Alves / Agência Brasil

A little over a month after the release of the provisional measure (PM) that should regulate the online betting sector, the text should be completed soon. The sports betting PM is very close to being edited.

The Ministry of Finance sent the documentation to the Ministry of Civil Affairs a month ago. According to information from the newspaper O Globo, the expectation is that the publication in the Official Gazette will happen by the end of this month of June. The Federal Government’s preference for an PM is due to the immediate entry into force of the rules.

Today, there are approximately three thousand betting sites operating in Brazil, but all are hosted abroad. It is estimated that these platforms move about 10 billion reais, practically without paying taxes due to the lack of specific regulation for this market.

According to the text of the sports betting PM, the taxation should be around 16% of the revenue of companies in the sector. In addition, the provisional measure will also include actions both to control and prevent fraudulent schemes in sports, such as the identification of bettors.

PM for sports betting must have mechanisms to monitor and combat excessive gambling

The Ministry of Finance also intends to create a new secretariat to take care of online betting issues. The objective is for this secretariat to take care of the collection of online commerce and betting.

Another intention of the Federal Government is to have mechanisms that help curb excessive gambling. The Ministry of Health must be activated at this point with the possibility of offering a telephone line for Brazilian players, as already occurs in other countries.

Another hypothesis evaluated is the creation of a form of help with mental health professionals from the Unified Health System (SUS). However, these mechanisms tend to appear only in a future phase of the regulatory process.