Brazil is making significant strides in advancing its sports betting and online casino market, as the Senate has approved a bill to regulate and tax the industry. The Economic Affairs Committee (CAE) approved the proposed rules for sportsbooks and online casinos, marking a significant step forward for the legislation.
The approved project includes a 12% tax on operators, which is lower than the previously suggested 18% by the Chamber of Deputies. Additionally, a 15% tax on bettors’ winnings was recommended, aiming to strike a balance that supports the industry’s growth while still generating revenue for the government.
The CAE also approved an urgent vote on the proposal in the Senate, signaling a sense of urgency to move the legislation forward. The proposed rules aim to regulate fixed-odd bets on real sporting events and online gaming, such as casinos.
The Ministry of Finance views this legislation as a way to increase the country’s cash flow, with hopes to achieve a fiscal target of zero deficit in public accounts in 2024 without increasing public debt.
However, the approved changes are expected to impact the Treasury’s initial revenue projection of up to BRL700 million next year. Senator Jaques Wagner emphasized the need for new studies to evaluate the potential impact of reducing taxes.
The legislation also outlines the tax implications for bettors, who would only be required to pay taxes once a year through Personal Income Tax (IRPF). The tax will apply to winnings that exceed the IRPF exemption table.
In addition to the tax implications, the text also addresses licensing requirements for online operators, setting a maximum fee of BRL30 million for a license valid for up to three commercial brands and five years. The Ministry of Finance will oversee the authorization process and impose requirements for online betting companies.
Ultimately, if the Senate plenary approves the reforms, the bill will return to the Chamber of Deputies for further approval before it can be enacted into law. This progress signals a significant development for the future of Brazil’s sports betting and online casino industry.