Brazil is currently in the process of finalizing regulations for betting and iGaming, with the industry eagerly awaiting official approval.
Brazil could see the legalization of sports betting and online gambling in the near future, as early as 2024. This decision was made by the Chamber of Deputies after a crucial vote on Thursday. According to Agência Câmara de Notícias, Bill 3,626/2023 was approved, which aims to regulate sports betting. The Senate had previously reviewed the bill, but only approved the sports betting aspect and rejected the section regarding online gambling. As a result, the bill was sent back to the Chamber of Deputies for further consideration.
Despite the Senate’s ruling, the most recent vote restored the original language of the bill regarding iGaming. Essentially, this reversed the Senate’s decision, at least temporarily. While the majority of the Senate was opposed to online gambling, 261 Deputies voted in support of it. In comparison, only 120 Deputies voted against iGaming on Thursday.
Due to the most recent ruling, Bill 3,626/2023 has received more support and is currently awaiting the last stage of approval. The suggestion for regulating sports betting and online gambling is now in the hands of President Luiz Inácio Lula da Silva. If the president gives the green light, this will be the final hurdle before it becomes a law, allowing for legal iGaming and sports betting to take place in Brazil.
The proposed legislation establishes the tax rate and licensing fees for operators in the betting and iGaming industries.
At first, the proposed legislation suggested a tax rate of 18% on the earnings of betting and iGaming companies. However, after undergoing significant revisions, the most recent proposal includes a 12% tax on gambling revenue. Additionally, bettors will also be taxed at a rate of 15% on their winnings.
Like other industries involving betting and online gambling, companies operating in Brazil will have to pay a fee for a license. This fee has been determined to be BRL 30 million (equivalent to $6.1 million) and allows operators to have up to three different brands for a period of five years. The Ministry of Finance has been designated to oversee and regulate gambling activities in the country.
Recently, the gambling laws have gained momentum. This coincides with the Chamber of Deputies’ decision to approve a proposal that bans social media influencers from promoting unregulated gambling websites. The goal of this proposal is to decrease the presence of illegal gambling and prevent influencers from promoting such activities through stories, videos, or any other online means.
