On July 25, 2023, Provisional Measure No. 1,182, (MP 1182/23) was published in the Federal Official Gazette (DOU), bringing changes to the sports betting scenario in Brazil.

Now, fixed odds betting lotteries (popularly known as sports betting) have a more detailed legal framework and may be exploited in Brazil by any company that meets the legal requirements set forth in MP 1182/23, subject to an authorization from the Ministry of Finance to be obtained pursuant to future regulations still to be issued.

MP 1182/23 establishes how this activity will be taxed, which individuals are prohibited from participating as bettors, sanctions for companies that exploit this activity without the authorization required by the Ministry of Finance, rules on advertising and marketing relating to sports betting and even prohibitions on participation as a shareholder in a fixed odds lottery operator by individuals who have shares in a soccer corporation or professional sports organization, among other rules.

As regards taxation, MP 1182/23 determined that the revenue obtained from all bets, after the payment of the prizes to the players and of income tax due on the prize, shall be subject to a 18% tax (10% as Social Security Tax and 8% allocated to entities linked to basic education, public security and sports).

MP 1182/23 must be analyzed by the Congress and converted into law within 120 days. Otherwise, it will lose its effectiveness.

MP 1182/23 is available in Portuguese at https://www.in.gov.br/en/web/dou/-/medida-provisoria-n-1.182-de-24-de-julho-de-2023-498372451

 For more information, please contact our partners Angelica Santos and Marcia Issler Mandelbaum