The long-drawn out process of regulating sports betting in Brazil reached a new stage July 25 when President Luiz Inacio Lula da Silva issued a provisional decree to authorize sports betting at a taxation rate of 18 percent.
The process runs concurrently with a huge investigation of match-fixing that has netted dozens of soccer players.
President “Lula” sent his decree to Congress, which has 120 days to adopt it for it to become law. If it becomes law, Brazil could collect at least 2 billion Brazilian reals ($420 million) in taxes.
No taxes will be collected from bettors whose winnings are below $445. Gains above that will be taxed at 30 percent.
A year ago the investigation of match-fixing was sparked when the Goias district attorney’s office found that some players had been offered bribes to take specific actions during games. This led to alleged criminals making profits.
A Goias judge has authorized charges to be filed against 31, including 15 soccer players.
Marcos Sabiá, chief executive officer of the galera.bet betting company, welcomed the president’s action.
“This decree is welcome because it brings us some regulation and legal protection,” Sabiá said in a statement. “It establishes the limits to the operation of betting companies, rights and assurances for betters, the prohibition for companies that do not have a license, and the means for cooperation between authorities and betting companies so we fight match-fixing.”
The match fixing scandal has the potential to become international, with some of the suspects having ties with the U.S., Greece and Lithuania.
