Senate Approve Sports Betting Regulations and Taxes in Brazil
LISTEN TO THIS ARTICLE:The Brazilian Senate has passed a bill to regulate sports betting and implement taxes on the venture in the jurisdiction.
The law requires online betting firms to pay a 12% tax on their revenue and imposes a 15% tax on gamblers' winnings. Also, any betting company willing to operate in Brazil will have to obtain a license valued at 30 million reais.
The bill is a major step in regulating Brazil's sports betting sector. It seeks to establish a structured framework for online gaming and betting in the state. It also aligns with the government’s aim of generating an estimated 1.65bn ($332.3m) in tax revenue from the market next year.
New Brazil Sports Betting License Requirements
Although sports betting had been legalized in Brazil since 2018, the market was very much unregulated, which has led to many betting businesses actively operating in the country without regulatory approvals.
However, the authorities have set up regulations and criteria for operators looking to offer sports betting services in the country. In October, the country’s Ministry of Finance published Decree 1330 in the Official Gazette, which detailed crucial requirements for operators seeking to provide sports betting services in Brazil.
It laid out the essential legal, financial, and technical requirements companies must meet before they can secure a betting license. It also established operational standards and emphasized measures against money laundering while safeguarding bettors' rights. Additionally, operators are mandated to get their platforms certified by acknowledged laboratories and provide 24/7 customer service in Portuguese at no cost to the users.
The government gave operators 30 days to apply for betting licenses in the country. Companies wishing to register must submit documents that show their legal eligibility, tax compliance, labor adherence, financial standing, and technical capabilities.
iGaming Excluded from Bill
While the Brazilian sports betting bill has progressed, the future of online gaming in the country remains uncertain.
The Senate passed the 'basic text' of Bill 3626/2023 but honored an appeal by Senator Carlos Portinho from the Liberal Party (RJ) to remove online casino elements from the legislation.
However, there are chances that online gaming could still be considered since the bill is slated for further analysis.
Deputies will conduct a thorough review of online casino modalities, taking into account the impact of the exclusion on the government's revenue objectives outlined in the legislation. They can either decide to broaden the bill’s scope to cover online casino games or maintain the current text for final approval by President Lula da Silva.
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