Last updated on October 12th, 2024 at 11:23 am
The Ministry of Justice and Public Security proposed doubling the National Public Security Fund’s share of gambling revenue in Brazil. The proposal aims to increase the fund’s tax portion from six percent to twelve percent.
According to pay per head experts, the relevant measure is still pending a vote in the Senate plenary. The CCJ (Constitution and Justice Commission) has already approved the plan. The document says that businesses in the industry are subject to a 17% tax on gaming profits. This rate, however, will not be applied until the rewards awarded to bettors have been subtracted.
According to the legislation, the funds would be distributed among several categories, including social acts, primary education, sports groups, and public security.
Potential Gambling Revenue in Brazil
The Ministry of Justice has justified suggestions to enhance transfers to the FNSP. It claims, more specifically, that public security agencies will have more power if the law gains approval. Therefore, more government expenditure is required to fund this expansion. The government agency also notes that legalizing physical games would affect procedural laws. However, there’s no way of becoming a bookie based on the current proposal.
This new law will severely affect the efficiency of police departments, which will involve several fields of study. Consequently, the proportion to be handed over to the National Public Security Fund must be renegotiated, increasing it from 6% to 12% to accommodate the share growth.
Gaming establishments like casinos and Jogo do Bicho might soon be legal according to a law in the National Congress. The publication of these games has been a topic of contention for over 30 years, with conservative groups and evangelicals expressing their opposition.
However, things have changed in recent years due to increased tax collection, billion-dollar investment commitments, and the stepping up of foreign lobbying efforts targeting Brazil.
Initial Gambling Proposal in Brazil
A former deputy named Renato Vianna (MDB-SC) developed the idea in 1991. The original intent was to nullify gambling misdemeanor rulings from the 1940s. In 2022, the Chamber of Deputies’ leadership made a significant decision to broaden the project’s scope. Gambling establishments and bingos were subsequently decriminalized as part of this development.
The current project wording says that Jogo do Bicho is no longer a crime and may be legally done; however, each state can only have one Jogo do Bicho for every 700,000 people. After the Senate approves, President Lula (PT) will officially ratify the project.
According to a message from the Ministry of Justice, an internal investigation into the potential effects of gambling legalization on national security is underway.
As a first step toward regulating the industry, the Brazilian government began blocking over 2,000 gambling websites on Friday. Worries about addiction are on the rise, particularly among disadvantaged populations numbering in the tens of millions, prompting this action. Thus, there’s no way to learn how to open a sportsbook in the country.
The authorities are enforcing the regulation and taxation of betting enterprises, as per a bill signed by President Luiz Inácio Lula da Silva in December 2023. According to the country’s authorities, nearly 52 million Brazilians have begun betting online in the past five years. While traditional forms of gambling like casinos and slot machines are outright forbidden in Brazil, the country did legalize internet betting in 2018.
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