The drive towards the legalisation of sports betting within Brazil is persisting. In recent news, Senator Angelo Coronel was designated as the officiating rapporteur for a legislative document advocating for the legalisation of wagering on sports within the nation. This comes on the heels of the earlier triumph of the proposal, Bill 3626 / 2023, which triumphantly navigated through the lower assembly of Brazil’s Parliament in the preceding month.
Should the aforesaid proposition gain further momentum and subsequently be enacted, it mandates a taxation rate of 18% on the gross profits garnered by sports betting operations. The institution of lawful sports wagering is projected to introduce a new stream of tax revenue for Brazil. Although it’s too early to speculate on the tax returns this venture might yield, the proposal envisions granting licenses to operators expressing interest in providing their services within the Brazilian market. As per the proposed documentation, a licensure fee of BRL30 million (equivalent to $6 million) would be effective for a duration of three years.
At present, the proposed Bill 3626 encompasses the legalisation of sports betting activities, in addition to internet gambling. The tax obligation applicable for online gambling would be comparable to the one for wagering operators. Concurrently with supplementing fresh tax revenue, the new proposal is anticipated to drastically curtail the prevalence of the shadow market, offering bettors and sports fanatics alike legal and risk-free options for betting.
Enactment of Lawful Wagering Expected to Entice Major Wagering Corporations
Given that the proposal advocating for the legalisation of sports betting is accruing momentum, it will subsequently be subjected to an examination by the Commission of Economic Affairs, as well as the Sports Commission (Cesp). The Cesp has formerly proposed modifications to the bill when it initially arrived at the Senate. Following the inspection by the Commission of Economic Affairs and Cesp, the sports betting bill will proceed to the Senate plenary.
Albeit Brazil is yet to reach the benchmark of legal sports betting, various operators are already recognising the lucrative potential of this market. The legal sector within the country is forecasted to allure major stakeholders within the entertainment and gaming sector keen on catering to the high-spirited sports fans. Keeping the broader perspective in mind, the entire Latin American territory is being recognised for its phenomenal potential in terms of legal sports wagering and online gambling.
