Brazil Moves Forward with Sports Betting and Casino Gambling Regulation
Brazil's Ministry of Finance has released a provisional measure on sports betting, while Embratur's new president supports casino gambling.
The Brazilian Ministry of Finance has reportedly issued the text of the Provisional Measure on sports betting, according to Folha de Sao Paulo. The measure is expected to be evaluated by the government's Civil House and signed by President Lula da Silva after the Carnival holidays.
Brazil legalized sports betting four years ago, however the industry has yet to be regulated. About 450 bookmakers operate in the country but are based abroad, causing an annual loss to the state of between $1.1 billion and $1.5 billion since 2019.
In addition to sports betting, the Brazilian tourism industry is interested in the regulation of land-based casinos, igaming, bingo, and jogo do bicho, which could attract both Brazilian and foreign tourists. Marcelo Freixo, the new president of the Brazilian Tourism Institute (Embratur), has confirmed that the agency is following how gambling could boost tourism in Brazil. Freixo had voted against Bill 442/91 in February last year, which aimed to legalize casino gambling. Still, he now supports the regulation in his new position, stressing that the government must take a responsible approach.
The regulation of the gambling industry in Brazil could provide significant benefits to the state's economy. It is estimated that gaming would generate $3.8 billion a year in taxes and create approximately 200,000 jobs while formalizing around 450,000 jobs. Embratur would also benefit significantly from the legalization of land-based casinos, receiving 12% of the funds that gaming contributes to the state. The CIDE-Juegos tax collection agency would divert 10% of the funds to sports, 16% to the State participation Fund (FPE), and 16% to the Municipal Participation Fund (FPM), among others.