Brazil closes on regulated betting after record MP 846 approval
Brazil has taken another step towards legal and regulated sports betting after the country’s Senate voted in favour of MP 846.
Brazil’s upper legislative body passed the bill, which details the allocation of lottery revenue to public security as well as allowing for online sports betting, less than 24 hours after the Lower House had done the same. It now requires only the president’s signature to become a law.
MP 846 is primarily focused on how revenue from Brazil’s national lottery – operated by Ministry of Finance-controlled Caixa Econômica Federal, will be distributed among sport, culture and public safety. However, it also includes plans that will give the green light to regulated sports betting.
The federal government expects that the new measure will guarantee the annual transfer of about R$630m for sports, R$443m for culture and R$1bn for public safety
Land-based operators will be forced to pay out at least 80% of their handle to bettors, with gross revenues capped at 14% and government-funded programs taking the remaining 6%.
Conversely, gross revenues for online operators will be capped at 8%, with at least 89% of the handle going to bettors and the remaining 3% soaked up by the government.
MP 846 was edited in August as a new version of MP 841, released in June of this year, which is no longer valid. The new text is the result of a coordinated effort by of the Ministries of Culture and Sport who were unhappy with the prospect of decreased revenues from lottery receipts.
Source: SBC News
