On Tuesday, the Brazilian government issued a provisional decree to legalize sports betting and impose an 18% tax on the revenues of betting companies. This decision comes in the midst of a widespread investigation that has implicated numerous individuals in a match-fixing scandal.

The decree, proposed by President Luiz Inacio Lula da Silva, has been forwarded to the congress for approval. The congress has a 120-day period to vote on it in order for the decree to remain valid. The finance ministry of Brazil anticipates that if the provisional measure is confirmed, the government will collect a minimum of 2 billion Brazilian reals ($420 million) in taxes from betting companies in the next year.

Regarding Brazilian bettors, they will be exempt from paying tax on gains up to approximately $445 on each bet. However, any gains surpassing this amount will be subject to a 30% income tax.

The ruling was issued less than a year after a Goias attorney's office inquiry revealed that some players had been offered between $10,000 and $20,000 to carry out specific actions, such as obtaining yellow cards and resulting in penalties. Then, alleged crooks would make money on gambling websites.

Brazilian championship sponsor galera.bet CEO Marcos Sabiá expressed his approval of the decision in a statement.

“This decree is welcome because it brings us some regulation and legal protection," Sabiá said. “It establishes the limits to the operation of betting companies, rights and assurances for betters, the prohibition for companies that do not have a license, and the means for cooperation between authorities and betting companies so we fight match-fixing.”

This year, the inquiry has expanded to include the Brazilian Congress and Federal Police as well as roughly 20 games from the top flight and second divisions of the nation as well as certain smaller state leagues.

The Associated Press was informed by a district attorney in May that the scandal might have an international impact. According to local media, accused perpetrators stated having contacts in Lithuania, Greece, and the United States.

15 soccer players from Brazil's first and second divisions are among the 31 people accused of participating in the plan who have already been charged by a Goias court.