Betting and iGaming Await Final Approval in Brazil

Sports betting and online gambling may become a reality for Brazil as early as 2024 after an important decision taken by the country’s Chamber of Deputies. In a final voting session on Thursday, the Deputies voted to approve Bill 3,626/2023, a proposal that called for the regulation of sports betting, as announced by Agência Câmara de Notícias. Earlier this month, the same proposal was reviewed by the Senate. While Senate members approved the sports betting part of the bill, they voted against the included text related to online gambling activities. This pushed the bill once again into the hands of the Chamber of Deputies.

Regardless of the Senate’s decision, the latest vote reinstated the bill’s text that involved iGaming. This in other words helped overturn the decision made by the Senate, at least for the moment. Unlike the Senate vote, where a majority of the members were against online gambling, a majority of 261 of the Deputies voted in favor of online gambling. In contrast, the votes against iGaming on Thursday were only 120.

Thanks to the latest decision, Bill 3,626/2023 has gained further traction and now awaits final approval. The proposal that calls for the regulation of sports betting and online gambling activities now heads to President Luiz Inácio Lula da Silva. If the president signs off on the proposal, this would mark its final step before becoming law, effectively paving the way for legal iGaming and sports betting activities across Brazil.

Proposed Bill Sets Tax Rate, License Fees for Betting and iGaming Operators

Initially, the proposed bill offered an 18% tax on the revenues for betting and iGaming operators. However, undergoing significant changes, the latest proposal features a 12% tax on gambling revenue. On the other hand, bettors are also subject to a tax rate which is 15% on their winnings.

Similar to other betting and online gambling markets, operators in Brazil will be subject to a license fee. The license fee was set at BRL 30 million ($6.1 million), permitting operators to operate up to three brands for five years. When it comes to regulation of the gambling activities, the bill designated the country’s Ministry of Finance.

The traction gained by the gambling legislation comes at a time when earlier this week, the Chamber of Deputies voted in favor of a proposal that prohibited the promotion of unregulated gambling websites by social media influencers. That proposal, seeking to reduce the share of the black market, effectively prohibited influencers from promoting unregulated gambling activities through stories, videos or any form of online communication.