Following our series of testimonials from specialists in sports betting, the iGaming Brazil portal heard the opinion of lawyer Luiz Felipe Maia (FYMSA Advogados).
Maia gave her opinion on the Provisional Measure signed last Tuesday by the Federal Government. After years of waiting, Brazil finally sees a light on the path of the gaming and betting industry.
With the signing of the sports betting PM, the betting niche will have new regulations for the sector. But what does this mean in the opinion of lawyers who study and follow the subject?
This week the portal published the opinions of Neil Montgomery and Udo Seckelmann to have a parallel on the new points launched by the Provisional Measure.
As is known, the rules are already valid, but to remain valid, they will have to undergo an analysis by the National Congress within 120 days.
The PM amends Federal Law No. 13,756, published in 2018, which regulates the exploitation of fixed-quota lotteries by the Union, also known as “bets”.
Check out Luiz Felipe Maia’s full opinion
Understand a little more about the Provisional Measure
Tax
According to the measure, companies operating in the sector will be taxed at 18% on the GGR (Gross Gambling Revenue), meaning that 82% of revenue will remain with betting companies to maintain their operations.
The distribution of fees was established as follows:
- 10% social security contribution;
- 0.82% for basic education;
- 2.55% to the National Public Security Fund;
- 1.63% to clubs and athletes whose names and symbols are linked to bets;
- 3% to the Ministry of Sports.
Previously, in May, the Ministry of Finance had proposed a rate of 16%. However, through the Provisional Measure, the government increased the transfer to the Ministry of Sport from 1% to 3%, which increased taxation to 18%.
According to the 2018 law, taxation was up to 5% on company revenue after payment of premiums, in addition to income tax on premiums and contribution to social security, with a rate of 0.10% for physical bets and 0.05% for virtual bets.
Ban on betting
The provisional measure also brings prohibitions in relation to sports betting, determining that the following people cannot participate:
- public agent that acts in the inspection of the sector at the federal level;
- under 18 years old;
- persons with access to computerized fixed odds lottery systems;
- people who may have an influence on the results of the games, such as coaches, referees and athletes;
- registered in the national credit protection registries.
In addition, the prohibition also extends to spouses, partners and up to second degree relatives of public inspection agents, people with access to betting systems and those who can influence the results of games.
