Sao Paulo Closing in on Legalized Sports Betting?

The question of whether Brazil will soon establish a fully regulated sports betting sector still looms large, as President-elect ‘Lula’ prepares to take office. For months, exiting leader Bolsonaro has given mixed messages about the prospect of a legal sportsbook industry, as he attempted to appease different sections of the electorate. However, given his reliance on Evangelical support, a typically Conservative group with a clear anti-gambling stance, Bolsonaro did more to filibuster sports betting plans than he did to support them.

Nevertheless, one state has taken matters into their own hands, and are currently considering creating a local, legalized sports betting marketplace. Sao Paulo, the region which holds the country’s most populous city, may soon offer the opportunity for international operators to descend upon Brazil, as it hopes to become an investment centre for companies with ‘high mobility’. The bill which would enable such developments to take place is progressing swiftly through the district’s legislative chambers, and is sponsored by Sao Paulo’s city mayor, Ricardo Nunes. Last month, Nunes held discussions with global gaming giant Entain, and emerged from meetings convinced of the lucrative returns a localized sports betting sector would provide for a range of stakeholders.

One of the benefactor’s would undoubtedly be Sao Paolo’s local government, with operators anticipated to pay a 2% taxation levy on revenues generated through any gambling vertical.

There is still considerable hope that the Brazilian Senate may push through legislation before the turn of the year – something that ‘Lula’ would endorse if such circumstances arose. However, given the pace of developments in Sao Paulo, it could be that local residents here are able to access betting services ahead of the rest of the country.