Brazil: Provisional Measure to regulate gambling receives more than 40 amendment requests in Congress

Provisional Measure 1182, signed by President Lula da Silva on July 25, although it has 120 days to be reviewed by Brazilian legislators, has already received more than 40 requests for amendments. This MP includes an 18% tax on gambling operators, among other rules.

According to the Ministry of Finance, headed by Fernando Haddad, a collection of BRL 2 billion (about $420 million) is expected, a figure that they stipulate could reach BRL 12 billion (about $2.5 billion) annually over time.

Fernando Haddad

Most of the amendments are aimed at the allocation of resources obtained through tax burdens. Currently, the allocation is marked as follows: Social Security 10%, National Public Security Fund (FNSP) 2.55%, Basic Education 0.82%, Ministry of Sports 3%, and National Sports System (clubs and athletes) 1.63%.

According to an amendment submitted by Julio Cesar Ribeiro, the portion allocated to the Ministry of Sports should be shared with the sports secretariats of the states and the Federal District. If the proposal is accepted, the ministry would have 2% of the total collection and the secretariats would have 1%.

For his part, Deputy Cabo Junio Amaral, from Minas Gerais, seeks to increase from 2.55% to 4.55% the share destined to the National Public Security Fund, which will be responsible for the supervision of sports betting companies. This would mean that the companies, instead of keeping 82% of their total revenues, would receive 80%, with the difference going to the agency linked to the Ministry of Justice and Public Security.

Meanwhile, Congresswoman Rosângela Moro presented an amendment requesting that 50% of the proceeds destined for the Ministry of Sports be destined to the Brazilian Paralympic Committee (CPB).

Outside the area of tax collection, Congressman Fred Costa is proposing to include a provision that would oblige sports betting apps and websites to report suspected cases of manipulation of results to the Public Prosecutor's Office.

The complete list of amendments can be accessed on the Senate's website.