Publicado em 26/07/2023

Regulation of sports betting - Provisional Measure 1,182/2023.

Provisional Measure 1,182/2023 (MP 1,182/23), published on July 25th, regulates the conduction of sports betting in Brazil, carried out by national or foreign private companies, known as “bets” and introduces the respective taxation.

MP 1.182/23 amends Law 13.756/2018 to allow the conduction of such betting not only by national private companies, but also by foreign ones, duly established in Brazil, under an onerous regime of concession, permission or authorization, pursuant to regulations of the Ministry of Finance.

Specifically regarding taxation of gambling winnings and of bets, and destination of the respective amounts collected, the new rules establish that:

  • amounts received by gambling winners will be subject to withholding income tax on a definitive basis (“WIT”) at the rate of 30%; WIT will be levied only on winnings above the first bracket – currently exempt at the amount of R$2,112.00;

after deduction of the winning prize and of WIT, companies organizing bets will subject the collected balance to 18% of taxes as the following:

a) 10% Social Security contribution;

b) 3% owed to the Ministry of Sports;

c) 55% owed to the National Public Security Fund;

d) 63% owed to clubs and professional athletes who have their symbols and names linked to the bets;

e) 82% to certain public education entities.

On a monthly basis, private companies must also pay an inspection fee which is levied at a fixed amount, that varies depending on the monthly gambling winnings, currently at amounts that range from R$54,419.56 up to R$1,944,000.00.

Partners or shareholders of “bets” cannot hold a corporate stake in sports entities or Soccer Corporations.

Gamblers should be older than 18 years; cannot have a negative credit protection record; and cannot have any influence on results, such as referees, players, etc.

New rules were also established on:

  • advertising of bets;
  • financial transactions and payment arrangements for bets.

Provisional Measure 1.182/2023 shall be converted into law by the National Congress within 120 days.

Normative Act: Provisional Measure n. 1.182/2023, published on 07/25/2023.