Brazil Approves Bill to Regulate Sports Betting and Online Gaming
September 14, 2023
The Brazilian Chamber of Deputies has approved a bill that regulates sports betting and online gambling, including virtual casinos. The purpose of the bill is to increase tax revenue and it establishes taxes on winnings and betting houses, as well as regulations for advertising in this sector. The bill was proposed by the Ministry of Finance and is expected to undergo a vote in the Senate.
The new regulations primarily apply to fixed-odds betting on real sporting events and also extend to online betting. The government estimates that it could collect between 6 and 12 billion Brazilian Reais annually with this measure, although the estimate for the next year is 700 million Reais due to the lack of regulation in the market.
The bill maintains the taxes proposed by the government, with a rate of 18% for betting houses and up to 30% on winnings earned by bettors. In addition, changes have been made to the distribution of the funds collected, including an increase in funds allocated to ministries related to sports and tourism.
In addition to fiscal regulations, the bill also sets guidelines for advertising in the gambling industry and measures to prevent compulsive gambling. Sanctions are also contemplated for those who do not comply with the provisions of the law, including warnings, fines, and suspensions of activities.
In summary, the Brazilian Chamber of Deputies has approved a bill that regulates sports betting and online gambling, with the aim of increasing tax revenue and establishing clear rules for the industry. The bill now heads to the Senate for final approval.
