Brazil Advances Towards Regulated Sports Betting with New Legislation
Brazils upper legislative body has approved regulations governing wagering on athletic events, setting the stage for a more regulated and potentially profitable sector. This action is anticipated to generate roughly R$1.65 billion (equivalent to US$332.3 million) in government revenue by the following year.
However, the measure still requires endorsement from the Chamber of Deputies before becoming law. If enacted, digital gambling platforms would face a 12% levy on their earnings, while fortunate bettors would see 15% of their gains claimed for taxes. Additionally, companies would need to obtain a license costing a hefty R$3 million to conduct business in Brazil.
Although sports betting itself received legal authorization in 2018, it has functioned in a somewhat ambiguous zone without official rules. This has resulted in a surge of betting firms keen to capitalize on the Brazilian market. This new legislation seeks to alter that by establishing a defined structure for internet-based gaming and wagering activities.
This is not the initial endeavor to impose order on the expanding industry. The Brazilian administration has been preparing the foundation with various regulations and stipulations for operators. For example, Decree No. 13,300, released by the Ministry of Finance, outlines the fundamental guidelines for operators aiming to provide sports betting services within the nation.
Brazil is taking concrete steps to oversee sports wagering, implementing strict regulations. The new laws outline the requirements for companies to operate within legal boundaries, including legal and financial obligations, technological infrastructure, and operational procedures. Safeguarding players and preventing money laundering are paramount concerns.
Beyond mere administrative procedures, Brazil is setting a high bar. Betting platforms must obtain certification from accredited laboratories and offer continuous customer assistance in the local language.
This initiative is not isolated but rather part of a broader effort to regulate the gambling sector. This includes the designation of Senator Angelo Coronel as rapporteur for Bill 3626/23, which seeks to establish a comprehensive regulatory structure for sports betting and internet-based gaming.
