Brazil’s online gambling industry is now a reality, after the lower house of the country – the Chamber of Deputies — approved Bill3626/23 to regulate online gambling and sports betting.
Adolfo Vian is a member of the Brazilian Social Democratic Party and a policy reporter.
Before it can be signed into law, the Betting Regulating Bill must first be approved by Senate during a final vote.
Viana’s submission contained several amendments made to ‘Provisional Measure 118’, which was endorsed by Lula Da Silva as well as the Workers Party. In July, the Workers Party had submitted to Congress their preferred legislative policies for launching a regulated online sports betting market.
The bill will allow wagering on sporting events including esports, online betting and fantasy sports, but not fantasy football. The bill also includes an 18% tax rate on net revenues of online operators in the market.
Viana proposed a tax rate reduction to 12 percent, but it seems to have been rejected.
The tax revenue will be divided between the Ministry of Education (1,82%), the Brazilian sports eco-system (6.63%), tourism (5%) and the costs and maintenance expenses of fixed-odds betting lottery operating agents (maximum 82%).
The document mentions ‘online games events’ but does not specify the specific types of games that will be permitted.
A three-year gambling licence in Brazil, issued by the Ministry of Finance will cost R$30m (4.93m PS), and companies must be based in Brazil in order to get a license.
Exclusions apply to foreign companies who do not have local presence at the time of applying.
Operators are also required to have a minimum share capital and at least one employee with verified experience in the gaming sector. They must adopt policies that prevent money laundering, as well as other illegal activities.