Sports betting became legal in Brazil

Sports betting has become legal in Brazil. This happened last Tuesday, after President Luiz Inácio Lula da Silva signed the relevant decree on the Interim measure.

Recall that in 2018, a law to liberalise the sports betting market was signed by President Michel Temer at the time. According to its content, the government needed to create a regulatory body in the field of sports betting and develop requirements for the activities of bookmakers. The regulation had to be introduced within two years, with the possibility of postponing the deadline for another two years. 

In May 2022, the Brazilian Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) published the prepared rules for sports betting and cybersports. However, former Brazilian president Jair Bolsonaro, who lost the election, did not sign the bill, and it expired on 12 December 2022.

The signing of Lula da Silva's Interim Measure by the president means that the Ministry of Finance will begin creating the National Secretariat of Gaming and Betting (SNJA). The income of betting companies will be subject to an 18% tax and the cost of the licence is expected to be R$30 million ($6.35 million).

Brazil's finance ministry expects to collect at least 2 billion Brazilian reais ($422 million) in taxes from betting companies next year if the temporary measure is confirmed by lawmakers.

The president's executive order has been sent to Congress, which must vote on it within the next 120 days for it to remain in effect.