Sports betting sector in Brazil threatens legal action against government ban and demands reimbursement
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Sports betting sector in Brazil threatens legal action against government ban and demands reimbursement

Entities representing the sports betting market have declared that they will appeal to the Judiciary against the Provisional Measure (MP) that determined the prohibition of these activities in Brazil. Furthermore, these associations contest the government's refusal to reimburse the amounts paid by companies regarding operating authorizations in the country.

In a manifesto released this Friday (25), the Brazilian Institute for Responsible Gaming (IBJR), the National Association of Games and Lotteries (ANJL), and several licensed operators stated that the stance of prohibiting does not equate to protecting. According to these entities, banning already legalized platforms would not prevent betting but could direct users to illegal websites where monitoring and protection mechanisms are nonexistent.

The associations argued that the complete prohibition of fixed-odds betting would constitute a breach of the regulatory framework established by the Brazilian State itself, putting at risk an economic activity that had been operating under authorization, supervision, and rules defined by the Federal Government since January 2025.

Carlos Lima, executive president of IBJR, confirmed the intention to take legal action, telling CNN that the entities intend to use judicial avenues.

A second point of contention involves the capital invested by companies to obtain operating licenses. Each authorized platform made a payment of R$ 30 million for a concession to operate legally in Brazil, with the original permit having a validity expected until the end of 2029.

For its part, Finance Minister Dario Durigan informed this Friday that the government will not return these amounts. He justified that the authorization granted in 2024 constituted a 'precarious relationship valid for that moment.' Durigan added that there will be no need to compensate for lost revenue with the closure of betting, as household spending would be reallocated to other areas of the economy. The minister stressed that collection was never the main focus, mentioning that the issue of immunity was only resolved during the Bolsonaro government.

ANJL, for its part, indicated that any judicial litigation will seek more than just the return of the concessions. According to Plínio Lemos Jorge, president of ANJL, companies may claim compensation for investments made in the national territory and for moral damages.

Jorge detailed that the concession represents a counterpayment paid by the companies for the exploitation of the fixed-odds betting service for five years. Thus, the request for reimbursement would encompass not only the R$ 30 million but also compensation for material losses resulting from all the sector's contributions to the country, in addition to moral damages.

In the manifesto, ANJL also warned that the immediate closure of the legal market compromises investments, jobs, and tax revenue generated by the segment. The entity maintained that the companies fulfilled all legal obligations and that the decision imposes legal uncertainty on investors.

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Lula sanctions tax incentive for the creation of large data centers in Brazil
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olhardigital.com.br

Lula sanctions tax incentive for the creation of large data centers in Brazil

President Luiz Inácio Lula da Silva sanctioned the Special Tax Regime for Data Center Services, known as Redata. This initiative aims to suspend the collection of federal taxes on the acquisition of equipment necessary for the installation, expansion, and modernization of data centers within the country.

The government's purpose is to stimulate investment and increase national technological infrastructure. The main focus of this new regime is directed towards specialized structures in cloud computing, high-performance processing, and artificial intelligence.

Redata establishes a five-year period of exemption from federal taxes for companies approved by the government. The taxes covered by this measure include Import Tax, PIS/Cofins, PIS/Cofins-Importation, and IPI, applied to the purchase of equipment intended for data centers.

Estimates and Perspectives

Projections presented for this program indicate great growth potential. Vice President Geraldo Alckmin highlighted the opportunity to expand Brazilian infrastructure, stating that despite the country representing only 3% of the world's population, it has a promising path given its percentage of GDP and the quantity of data centers.

Rogério Ceron, executive secretary of the Ministry of Finance, reported that approximately 60% of data and artificial intelligence used in Brazilian territory are processed outside the country. According to Ceron, by increasing infrastructure capacity in Brazil, the government expects to attract companies willing to develop AI solutions and process their data locally.

Additionally, Minister Dario Durigan mentioned that the implementation of Redata can help ensure sovereignty over Brazilian data currently stored abroad.

Legislative Evolution and Participation Conditions

Initially, Redata was planned in a provisional measure, but the incentives lost validity after the text was not analyzed by Congress. Subsequently, the exemptions were formalized in a bill proposed by former deputy José Guimarães (PT-CE).

Obtaining the tax benefit is conditional upon approval by the Ministry of Finance. Centers dedicated to the storage, processing, and management of data and digital applications can participate, covering areas such as cloud computing, high-performance processing, and the training and inference of artificial intelligence models.

Penalties for Non-Compliance

Companies that fail to meet the stipulated deadlines will be subject to payment of the suspended taxes, plus fines and interest. For equipment suppliers, charges may be initiated if the products are not delivered to the data center. Furthermore, the text provides for the suspension of tax benefits in future acquisitions in case of non-compliance with the effective provision of processing for Brazil.

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