Sports Betting Advances in Brazil
Brazil’s incumbent president Jair Bolsonaro spoke to the current state of the country’s sports betting plans this week on the podcast “Paparazzo Rubro-Negro.” In his interview, Bolsonaro confirmed that Brazil’s sports betting law has made substantial progress in the last months of planning by legislators. It looks primed to meet its deadline of December 12 for full public disclosure. Once all plans are finalized for the sports betting procedures in Brazil, the law will go into full effect for all users across the country, marking a significant shift in the industry to date.
Incumbent president Jair Bolsonaro spoke about the state of Brazilian sports betting regulation on a recent podcast interview. Jonathan Velasquez/Unsplash
Brazil faces big decisions on two gaming laws
Two questions have left Brazilian gaming fans in limbo for the last year: Whether all gaming will be legalized and when Brazil’s new sports betting law will come into place. Laws are in motion regarding both issues, but a crucial difference separates them. The current president, Bolsonaro, does not support a full legalization of gaming, though he is in support of regulating sports betting.
Bolsonaro, who is currently up for reelection and will face off in a runoff with former president Luiz Inácio Lula da Silva (or “Lula”) at the end of October 2022, spoke to the matter on the “Paparazzo Rubro-Negro” podcast this week. Regarding sports betting, he was quite positive in considering how the plans to regulate the industry have progressed since the law was initially voted on by the national congress this spring.
Since congress voted months ago, the industry and fans have been patiently waiting for news as both gaming bills have seemed to stall since their initial votes. In order to be put into effect, lawmakers need to create the full rulebook for how sports betting will be regulated in the country. Bolsonaro indicated that this framework is coming along and even referred to it as “quite advanced.”
Some major changes are in store for sports betting whenever the regulations are revealed. Brazil has allowed betting on sports events since 2018. However, all sportsbooks have been required to host their businesses outside of Brazil. This means that despite the massive popularity of sports betting, particularly online sportsbooks, the government has not been able to tax the bets.
Where will tax earnings from sports bets go in Brazil?
On the podcast interview, Bolsonaro joked that the treasury does not need any more money and would not be the recipients of the sports betting tax earnings. He said that infrastructure building could use support, however, so it seems likely that earnings may be earmarked for these types of public projects.
Sportsbooks active in the country have quickly signed on new ambassadors and made partnership deals with teams across Brazil. A study by IBOPE Repucom shared that sports betting companies are the number one sponsorship names on soccer jerseys there. All in all, this indicates potentially high tax earnings once betting is properly regulated.
Will the presidential election results change anything for Brazilian gaming?
The results of the election certainly will have a long term effect on laws across Brazil, including within the gaming industry as both candidates have contrasting approaches to the issues facing the country. However, it is uncertain what the short term effects of the election will be.
For instance, even after the vote, Bolsonaro will have the power to affirm or veto laws that come to his desk until the inauguration takes place in early 2023. The period lasts 63 days during which congress still has the power to act on new legislation. It’s possible the bill on gaming regulation will come to Bolsonaro’s desk during this time, though legislators have indicated that they can push the bill through even if the president vetoes it.
If a new president were to wish to reverse the decision on sports betting, for example, it would not be an easy process. This is because a majority of legislators were already in support of the bill, and it seems to have popular support as well. Furthermore, it is uncertain whether a progressive candidate would be against regulating gaming, as most of the pushback in Brazil stems from conservative and outright religious parties.
