The Plenary of the Chamber of Deputies of Brazil has approved Provisional Measure 1,034/2021 which regulates a number of tax regimes for sports betting, the financial sector, the chemical industry and the automobile industry. The bill has been sent to the Senate for its final approval.
As reported by BNL Data, modifications proposed by Congressman Moses Rodrigues include a change in art. 30 of Law No. 13,756/2018, which has regulated sports betting since December 12, 2018. In art. 6 of the Provisional Measure approved this week, the changes establish the percentages that state institutions will receive from the GGR, in addition to the tax on the license adjudication.
“The goal is to improve sports legislation by changing the tax base to GGR,” the congressmen explained. The tax collection from physical and virtual sports betting operations will be used to pay bonuses and redirect money to social security, health and education.
Furthermore, 95% of the proceeds will cover the costs and expenses of the state entity that will be set up to control the gaming and betting sector. 0.82% would be invested in school organizations, while another 2.55% would go to the National Public Security Force (FNSP) and 1.63% to the “Brazilian sports entities that grant their rights to use their names, brands, emblems, anthems, symbols and more to promote and execute fixed odd bets”.
Last month, Rio de Janeiro began the process to incorporate new gambling products within Loteria do Estado do Rio de Janeiro’s (Loterj) portfolio. The official organization called for expressions of interest from sports betting and lottery operators seeking to take charge of the new verticals.
The tender is aimed at attracting companies that can create betting and lottery products for both online and brick and mortar.
Rio de Janeiro, along with Minas Gerais, is one of the first states to address sports betting operations and expanded gambling products. The move was prompted by a request made by state Deputy Alexandre Knoploch to authorize Loterj to operate the sports betting sector.