Brazil’s sports betting market is set to undergo regulation with the passing of a new bill by the Senate. The bill will impose taxes on sports betting, generating an estimated $332.3 million in revenue for the Government next year.
Under the legislation, online betting companies will be subject to a 12% tax on revenue, while gamblers’ winnings will be taxed at 15%. In order to operate within Brazil, betting companies will also need to obtain a license valued at 30 million reais.
Since the legalization of sports betting in Brazil in 2018, many companies have been expanding their operations in the country. This bill establishes a structured framework for online gaming and betting activities, bringing much-needed regulation to the market.
To ensure the integrity of the industry, the bill outlines essential criteria for operators interested in offering sports betting services. This includes meeting legal, financial, and technical qualifications, adhering to operational standards, and implementing measures to prevent money laundering and protect bettors’ rights.
Certification by recognized laboratories and round-the-clock customer service in Portuguese will also be required for sports betting platforms. These efforts to regulate sports betting in Brazil supplement other legislative actions, including the appointment of Senator Angelo Coronel as Rapporteur for Bill 3626/23, which aims to establish a regulatory framework for sports betting and online gaming.