The government of Brazil has submitted a provisional measure (PM) regulating sports betting to the National Congress—which could lead to a legal market after a wait of 20 years, according to a report by iGaming Business.
Regulation can’t come too soon for some, such as those who are investigating a wide-spread and ever-widening match fixing scandal.
The PM has been agreed to by President Luiz Inácio Lula da Silva and endorsed by the ministries of finance, planning, management, health, tourism and sports. It can go into effect for a maximum of 60 days, subject to an extension for another 60 days, although eventually Congress will have to enact it permanently into law.
The Ministry of Finance will be in charge of regulating sports betting. It will oversee sports betting advertising and set fines for infractions. It will enforce the age restriction that doesn’t allow those under 18 to place bets. Also excluded are those connected to sports organizations, athletes and employees of sportsbooks.
The measures tax gross gaming revenue (GGR) by licensed operators at 16 percent. Some of that will go to fund public health and anti-match fixing initiatives. Of the 16 percent tax, 2.5 percent will go to the National Fund for Public Security. Another 1.6 percent will go to sports clubs and 10 percent to social security. The Ministry of Sports will get 1 percent with 0.8 percent for education.
Players will pay 30 percent income tax on winnings.
Brazil is at the center of a widening match-fixing scandal, and its lead investigator, Goias state District Attorney Fernando Cesconetto, told the Associated Press that he has unearthed possible illegal activities by players from other countries. He hopes his findings will encourage similar investigations elsewhere.
Such as in the U.S., where Cesconetto named Major League Soccer midfielder Max Alves, who could face prosecution and has already been suspended by his ballclub, the Colorado Rapids.
Cesconetto told the AP: “There are some conversations regarding contacts of bettors from here with athletes abroad. And in its due moment that will be shared with foreign authorities.” He added, “Sharing our investigation so it can be investigated there is the natural path.” Alves is a Brazilian national.
The probe, which began in November, first looked at three matches and then to 11 games. Players were allegedly offered up to $20,000 for actions such as giving out penalty kicks.
Cesconetto told O Globo, “There’s still a lot of material to be looked into,” he said. “We are more focused on what happened here in Brazil.” The nation’s federal police have also begun an investigation into match-fixing, and the National Congress is expected to do the same.
TV Globo has aired several videos purporting to show match fixing, including a player being threatened by someone with a gun for not delivering on an action.
