Brazil is on the verge of legalising sports betting
Brazil's government has established a provisional measure for sports betting, bringing the country's 20-year wait to a conclusion.
The provisional measure (PM) was signed by the ministries of finance, planning, management, health, tourism, and sports after being approved by Brazil's president, Luiz Inácio Lula da Silva.
Once signed by President Lula, the PM will be published by the Brazilian government and will be in effect for a maximum of 60 days before being extended for another 60 days.
What are the metrics?
Licenced operators will be subject to a 16% tax on gross gaming revenue (GGR). A portion of this will go to public health programmes and anti-match-fixing measures.
The National Fund for Public Security will receive 2.5% of the total. Other allocations include 1.6% for sports groups and 10% for social security. The Ministry of Sports will receive 1%, while educational programmes would earn 0.8%.
Winnings will be subject to a 30% income tax, with a ceiling of R$2,112 (£344/€395/$429).
Brazil's Ministry of Finance will be in charge of regulating sports betting in the country, as well as advertising and imposing fines on those who violate the rules. Underage bettors, anyone with ties to sports organisations - including athletes - and bookmaker staff will be barred from placing bets.
The formation of a new secretariat - the special secretariat of the federal revenue of Brazil of the ministry of finance - will assist the ministry in determining whether operators fit the requirements for a licence.
In Brazil, a law to regulate sports betting has been in effect since 2018, but it was not advanced by then-President Jair Bolsonaro.
Hugo Baungartner discussed what a controlled market in Brazil may look like earlier this week on iGB's World Series of Politics programme.
By fLEXI tEAM