Brazil’s sports betting bill has been signed into federal law following the signature of President Lula Inacio Da Silva.
Finalising a move to a regulated wagering framework that comes after years of delays, the president’s sign-off reverses the failure of 2022 when former President Jair Bolsonar decided against signing the previous sports betting bill.
Remaining a topic of significant importance for the global igaming industry, the bill’s inclusion of online casino games had been disputed at several levels of Brazilian government.
The nation’s Liberal Party was outspokenly opposed to the inclusion of online casino within the bill, alongside senators that had disputed the authorization of online casino gaming.
However, in the Chamber of Deputies final session on December 22, 261 members voted for the bill which did include language for online casino games to be regulated.
In addition to online casino gaming, several further amendments had been made to the bill before it passed the vote, including a range of issues from tax to advertising.
Bill PL3626/23 was then signed into law by Lula before the turn of the New Year, introducing a new regulatory framework for Brazilian sports betting and online casino gaming.
Lula did however impose vetoes on certain proposals within the bill, most notably for the tax exemption for betting prizes up to R$2,112 ($435).
The Senate’s Economic Affairs Commission proposals for the taxation of bets will be maintained, with licensed operators set to be taxed at 12 per cent of GGR, while player winnings will be taxed at 15 per cent.
The tax collected by Brazil’s regulated market will be distributed amongst governmental departments as follows: 36 per cent to sports ministries and committees, 28 per cent to tourism, 13.6 per cent to public safety, and 10 per cent each to education and social security.
Health will receive 1 per cent, civil society entities 0.5 per cent, the Police Federal Equipment and Operation Fund 0.5 per cent, and the Brazilian Agency for Industrial Development 0.4 per cent.
The federal framework is in line with the PT government’s objective to enhance state revenues, with projections indicating that a regulated sports betting market is estimated to make at least R$10 billion ($2.06bn) for public services.
Operators can apply for a five-year licence, but must set up a company in Brazil that is based in the nation. The licences come with a fee of R$30m ($6m) for up to three skins.
Following the president’s signature, the Ministry of Finance will publish regulations to initiate Brazil’s federal sports betting and online casino market.
