The Brazilian gaming industry has reached a significant milestone as the Chamber of Deputies approves a bill to regulate sports betting and online casino games. The bill now includes an amendment that limits licenses costing over $6 million to a three-year term.
On September 13, following the release of the legislation by the Chamber, an amended version was enacted by the lower house of Congress. The duration of license authorizations has been altered to three years, with annual licensing costs exceeding $2 million for operators.
The tax rate for gross revenue from fixed-odds betting remains at 18 percent, rising to approximately 30 percent when considering other taxes. Despite efforts to lower the tax rate to 8 percent and exempt internet betting from a 30 percent income tax on player gains, stakeholders have been unsuccessful thus far.
However, online betting operators can find solace in the fact that the Chamber of Deputies’ plan to expand regulation of sports betting to other forms of online gambling remains mostly unchanged. The latest version of the bill includes casino-style games in addition to sportsbook operations.
Congressman Adolfo Viana, the bill’s rapporteur, responded to criticism from fellow congressmen with a conservative stance on gambling expansion. He emphasized that the focus is not on liberalizing online gaming, but rather on regulating a market that is present throughout Brazil.
The bill will now proceed to the Senate, where industry stakeholders will advocate for more favorable changes regarding taxes and other provisions. The Senate has a maximum of 45 days to vote on the bill.