BRAZIL OFFICIALLY SANCTIONS SPORTS BETTING AND ONLINE CASINO GAMBLING
On December 30th, President Luiz Inácio Lula da Silva signed Bill of Law 3626/23 approving a new regulatory framework for sports betting and iGaming.
This move follows the bill’s approval by Brazil’s chamber of deputies on December 21, with iGaming being reinstated after previously being removed by the Senate.
The legislation, which was pending for at least five years, underwent almost 100 amendments before being ratified by both chambers of Brazil’s National Congress.
The legislation regulates virtual betting, physical betting, real sports-themed events, online gaming and virtual online gaming.
The Bill establishes a 12% tax rate on gross proceeds earned by sportsbooks and iGaming operators, whilst bettors will see their net winnings taxed at 15%, instead of the 22% previously envisaged.
Operators, who will be expected to establish a physical presence in the country, can apply for both iGaming and Sports betting rights with concessions costing $6 million and renewable every five years.
Gaming is anticipated to begin in the second half of 2024, representing a significant expansion in Brazil’s gambling sector.
The Ministry of Finance is currently working on regulations to address concerns such as money laundering and terrorist financing and gaming is expected to begin in the second half of 2024.
Seasoned operators are expected to consider bids once regulations are determined, capitalising on Brazil’s “upper middle income” market status with a population of over 203 million.
Brazil expects the gaming liberalisation to generate over $2 billion a year in new tax proceeds as the market grows and matures.
