LatamRegulations
A New Chapter in Brazil’s Entertainment Regulation
January 8, 2024
President Luiz Inácio Lula da Silva sanctioned the law regulating the online sports betting market last Saturday (30). The law, one of the government’s measures to boost revenue in 2024, introduces significant changes affecting both companies and bettors.
With this law, both companies and bettors will be required to pay taxes. The new rules also prohibit individuals under 18 and those who may influence game outcomes from placing bets.
Below are key changes outlined in the legislation:
- Who is prohibited from betting:
- Individuals under 18 years old.
- Owners and employees of betting companies.
- Public agents linked to the regulation and oversight of the betting market.
- Individuals with access to the computerized betting system.
- Individuals who may influence game outcomes, such as sports leaders, referees, and athletes.
- Individuals diagnosed with ludopathy, compulsive gambling.
- Tax rate:
- Bettors will pay a 15% tax on the net prize through the Individual Income Tax (IRPF).
- Companies will be taxed at 12% on their revenue.
- The law applies to online casinos:
- Yes, the law also regulates online games, such as casinos.
- Fantasy-style games will be taxed:
- Yes, these games will be taxed at a 15% rate on the prize for individuals.
- Authorization for companies:
- Online betting companies must pay a fee of R$30 million to obtain the operating license and operate in Brazil.
- Only companies established according to Brazilian law, with headquarters and administration in the country, will be allowed to operate.
- Effective date of the rules:
- The law came into effect on the day of its publication, that is, last Saturday (30).
- However, some aspects have specific dates for enforcement, such as the allocation of resources, which will begin on April 1, 2024.
The implementation of these new rules marks a significant step towards the regulation and control of the online betting market in Brazil, ensuring responsible and transparent participation from both companies and bettors.
