The potential for legalized sports betting and online gambling in Brazil by 2024 is growing following a pivotal resolution by the nation’s Chamber of Deputies. Deputies gave the green light to Bill 3,626/2023 in a final vote that took place on Thursday, paving the way for the regularization of sport betting activities in their country. The news was revealed by Agência Câmara de Notícias. Previously, the Senate examined the same initiative. The Senate was generally accepting of the sections about sports gambling but dismissed the sections related to online gambling operations. This led to the bill being sent back to the Chamber of Deputies.
Despite the Senate’s initial disapproval of the online gambling clause, the latest outcome has revived the iGaming provisions of the bill. This act nullifies, at least for the present time, the Senate’s previous rejection. The scenario in the Deputies’ voting session differed from the Senate’s, as a decisive 261 Deputies endorsed the endorsement of online gambling. In contrast, a mere 120 Deputies opposed the iGaming legislation during the Thursday vote.
With the progression of matters, Bill 3,626/2023 is now under further attention and is primed for final confirmation. The recommendation advocating for the authorization of sports betting and online gambling actions is now pending the approval of President Luiz Inácio Lula da Silva. If the president authenticates the proposal, this will signify its closing phase before it attains status as a law, effectively permitting lawful iGaming and sports betting pursuits across Brazil.
Proposition Imposes Taxation Levels, Licensing Expenses on Betting and iGaming Service Providers
Originally, the proposed legislation suggested an 18% tax on the earnings of betting and iGaming service providers. However, subsequent substantial revisions now see the latest proposal imposing a 12% tax on gambling earnings. Meanwhile, gamblers will be exposed to a winning-tax rate of 15%.
In pattern with other betting and online gambling jurisdictions, operators in Brazil will be obligated to pay a licensing fee. The stated licensing payment is BRL 30 million ($6.1 million), permitting the operation of up to three brands for a duration of five years. The bill assigns the country’s Ministry of Finance the responsibility of regulating these gambling activities.
The momentum gained by the gambling legislation coincides with the Chamber of Deputies’ endorsement of a proposal earlier this week, which bans the advertisement of unregulated gambling websites by social media influencers. This proposal, aimed at cutting down the influence of the illegal market, effectively bars influencers from promoting unregulated gambling activities via stories, videos or through any online communication channels.
