Brazil is currently undergoing a significant development as President Luiz Inácio Lula da Silva formally endorsed a pioneering legislation on gambling, which will commence this year and permit sports wagering within the nation. The endorsement by the chamber of deputies on December 21, 2023, which preceded the approval, signifies a noteworthy advancement in the wagering environment of the South American country.
The legislation that has been ratified, referred to as Bill 3,626/2023, implements a number of significant modifications. A noteworthy element pertains to the authorization of online casino games, a clause that was initially omitted by the Brazilian Senate but subsequently reinstated by the chamber of deputies throughout the approval procedure.
Brazil will legalize online gambling in 2024.
The legislation, which is scheduled to be implemented in 2024, establishes an all-encompassing structure for overseeing sports wagering and online gaming within Brazil. In order to conduct business within the country lawfully, online bookmakers must acquire permission iplt20 from the government. Essential requirements for a gambling company are a Brazilian partner possessing a minimum of 20% of the company’s capital and a Brazilian headquarters. It is imperative that this partner does not possess any affiliations, whether direct or indirect, with professional sports organizations or financial institutions that process wagers.
Acquiring a license in Brazil entails an expenditure of R$30 million (€5.6 million), accompanied by a five-year validity period. A licensed gambling company may, contrary to earlier speculation, employ a maximum of three distinct brands.
Unexpectedly, the finalized legislation incorporates the sanctioning of online casino games, a provision that had encountered resistance within the Senate. The chamber of deputies reversed the Senate’s ruling, signifying a calculated maneuver to optimize prospective tax revenue in light of the substantial revenue generated by operators through online gambling.
The Taxes
A reduction from the initially proposed 18% to 12% of the net wagering revenue will constitute the gambling tax rate. On their net proceeds, gamblers will be subject to a 15% gambling tax.
Obtaining a license in Brazil entails a multitude of obligations for wagering enterprises. These encompass measures such as encouraging responsible gambling, discouraging the involvement of juveniles, and countering money laundering. It is against the regulations for providers to exhibit social appeal in their wagering advertisements. Permitted advertisements are required to contain mandatory warnings regarding the adverse effects of gambling and are subject to restricted media coverage.
Given the persistent match-fixing scandal afflicting Brazil, the Brazilian Institute for Responsible Gambling (IBJR) and the International wagering Integrity Association (IBIA) have formed a partnership to tackle the matter and ensure the integrity of sports wagering in the nation. Reportedly more than 130 companies are interested in submitting license applications; consequently, the gambling sector in Brazil is positioned for substantial expansion and metamorphosis in the future years.