Brazil Anticipates High Sports Betting Revenue
Gaming fans who have been closely following the situation of sports betting regulation in Brazil were finally given news this week. An analyst working in Brasilia, the country’s federal capital, has assessed the possible gains for the government, should sports betting regulation finally come into place. The much anticipated legislation may also finally see the light of day under the recently inaugurated president, Lula da Silva, who returned to office on January 1, 2023.
Brazil’s sports betting debate continues, now with the knowledge that tax revenue could add to $1.16 million USD yearly.Daniel Costa/Unsplash
Background on Brazil’s betting legislation
The possibility of legalizing and regulating not only sports betting but many forms of gambling in Brazil has been on the table for a long time. A bill for addressing both sports betting and general gaming garnered positive regard throughout Brazil’s federal government, though it has had opponents.
Former president Jair Bolsonaro flip-flopped on the issue, firmly opposing a sports betting bill after initially seeming in favor. This seemed a reaction towards groups he wanted to sway during his re-election campaign. He threatened to veto the bill if it came to his desk.
Ultimately, his campaign was unsuccessful. Likewise, these bills did not make it to his desk in time. In the midst of the election, serious economic issues plaguing the country, and political uproar in the midst of Lula’s inauguration, other more pressing issues took over for Brazil’s house and senate.
Now that the dust has settled, Brazilian legislators turn their eyes back to the issue of these bills, particularly sports betting. There are several strong arguments in favor of its regulation. For one, it would help to control an activity that is already happening clandestinely, offering more support and safety for players.
Second, it would allow the nation to take advantage of huge, unclaimed tax benefits. Of course, in the process of the initial bill being proposed and also updated, reports have been made about what the country could stand to earn if it claimed a piece of the sports betting pie for itself.
So, while this most recent report is not the first of its kind, it may have added fuel to the fire for legislators eager to get the bill passed. It is also one of the most comprehensive analyses of the situation to date.
A report from Jota Economics
This recent analysis was conducted by Fabio Graner, who works professionally for the film Jota Economics in Brasilia. According to Graner’s close inspection of the situation, were Brazil to regulate sports betting, it could earn as much as $1.16 million USD per year.
Brazil currently has a GDP of about $1.6 trillion USD. Comparatively speaking, the potential sports betting revenue is a drop in the bucket; however, it is unclaimed money on the table, and many invested parties argue that the government needs to take advantage of it now.
That is exactly what the country’s legislators seem to be doing. According to newspaper Folha de Sao Paulo, Brazil’s Ministry of Finance recently sent a provisional text to the Civil House for finalization, and ultimately a signature from President da Silva, if approved.
Some debate may still be required before the legislation is ready to roll out, though some involved claimed it could happen as early as this month. So far, it is known that the measure would give sports betting providers six months to register and pay a concession payment to the government. However, the concession fee amount has not been finalized yet.
Unregistered companies would be barred from advertising, including on sports jerseys and stadiums, which is a popular form of marketing at the moment. They could also eventually face fines or legal action for not cooperating with the government law.
