Brazils upper house has approved legislation that sets the stage for overseeing the sports wagering sector, a decision anticipated to generate an estimated R$1.65 billion (roughly US$332.3 million) in government revenue in the coming year.
Although sports wagering itself received approval in 2018, the industry has functioned in a legal gray zone. This recent legislation signifies a crucial move toward creating a more organized structure for internet-based gaming and betting operations within Brazil.
The legislation, having already passed the Senate’s scrutiny, must still navigate a few more obstacles, including endorsement by the Chamber of Deputies, before it can formally become law.
As per the proposed rules, online wagering firms can anticipate a 12% tax on their earnings, while bettors’ winnings will be subject to a 15% levy. Furthermore, companies will be required to obtain a license, carrying a substantial fee of R$3 million, to operate legitimately in Brazil.
This shift toward regulation is not unexpected, as the Brazilian government has been preparing the groundwork for a period now. They have already established a framework of regulations and prerequisites for operators keen on providing sports betting services within the nation, indicating a clear objective to formalize and leverage this expanding market.
This paper details the regulatory, economic, and technological benchmarks for businesses seeking to provide sports wagering services within Brazil. It establishes unambiguous guidelines for conduct, particularly concerning anti-money laundering measures and the safeguarding of players.
Significantly, the paper mandates that platforms obtain certification from an accredited testing facility, furnish customer assistance in Portuguese, and guarantee that support remains accessible around the clock without any associated fees.
Brazil’s initiative to govern sports betting expands upon prior legislative endeavors and ongoing efforts, including the designation of Senator Angelo Coronel as rapporteur for Bill 3626/23, which seeks to institute a regulatory structure for sports wagering and internet-based gaming.
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