Sports betting is legal in Brazil by law 13.756/18, however, there is no regulation to the law. As a result, all sites operating in the national market are hosted in other countries, mainly tax havens.
In addition, bookmakers have become the main sponsorship segment in the country. They occupy most of the jerseys of Serie A and B clubs, sponsorships of competitions such as Copa do Brasil, Brazil’s League and Libertadores.
The federal government decided to regulate the law through a PM. The text will predict that any site that is not accredited in Brazil that receives bets from IPs (electronic addresses) from Brazil will be carrying out an illegal activity.
With that, the forecast of the federal government is that competition regulations should prohibit exposure in the form of sponsorship of sites that are not headquartered in the country. Brands will also be prohibited from being displayed on team uniforms if they are not regularly registered in the national territory.
There will be a tax on economic activity, as already informed by the Minister of Finance, Fernando Haddad. The type of tax to be paid for betting is not yet defined: an agreement with the Federal Revenue will be required. This is the missing point to close the text of the new PM.
In addition, betting sites will be obliged to follow certain measures to combat match-fixing. The procedures will be established through an ordinance after the PM. There were negotiations with the Brazilian Football Confederation (CBF) and the Brazilian Olympic Committee (COB) to understand which points could be included in the text to combat fraud.
Source: UOL
