November 23, 2023, 06:49h

November 23, 2023, 06:49h

The Brazilian Senate has approved a project to advance the regulation of sports betting and online casino gaming in the country.
The proposal outlines the rules for sportsbooks and includes a 12% tax on operators, which is a reduction from the previously suggested 18%.
Additionally, the project calls for a 15% tax on bettor winnings, down from a previous suggestion of as much as 30%.
The next step will be an urgent vote in the Senate, which could take place soon.

Closer to the Finish Line

The rules in the proposed project apply to fixed-odd bets on real sporting events and online gaming, such as casinos. The Ministry of Finance hopes this project will bolster the country’s cash flow without increasing public debt.

Following the Senate’s approval, the Treasury will conduct new studies to assess the impact of the reduced taxes on its initial revenue projection. Betters will be taxed once a year, and only on winnings that exceed the exemption table amount.

Operators Pick Up Wins

In addition to a reduced tax rate, online operators will be granted licensing for up to three commercial brands and for a duration of five years. The licensing process will rely on rigorous criteria and will be determined by the Ministry of Finance. However, companies will be required to have 20% Brazilian ownership, and the specifics of online betting operations are still pending. If the Senate approves the bill, it will need to be once again approved in the Chamber of Deputies before it can become law.