Brazil Advances Towards Regulated Sports Betting with Senate Approval of Landmark Legislation
The nation of Brazil has moved closer to establishing a controlled sports wagering sector as its Senate approves legislation to regulate the industry. This action is projected to yield a substantial R$1.65 billion (equivalent to approximately US$332.3 million) in government revenue through taxation in the coming year.
The legislative proposal, requiring approval from the Chamber of Deputies to become law, proposes a 12% levy on the earnings of digital sports betting platforms and a 15% tax on the winnings of participants. To conduct business legally within Brazil, businesses would need to obtain a license at a cost of R$3 million.
Although sports betting received legalization in 2018, its operation has remained unregulated, resulting in a rapid increase in betting enterprises competing for a share of the Brazilian market. This recent legislation seeks to alter this by establishing a systematic structure for internet-based gaming and wagering activities.
This is not the initial measure taken by Brazil towards regulation. Decree No. 13,300, outlining the fundamental regulations for operators aiming to provide sports betting services within the nation, was previously made public in the Official Gazette by the Ministry of Finance.
This paper details the regulatory, financial, and technological requirements for businesses seeking to participate in the Brazilian sports wagering sector. It stresses ethical gaming principles, anti-money laundering protocols, and safeguarding bettors.
Moreover, the paper stipulates that sports wagering websites must secure accreditation from a recognized testing facility and provide continuous client assistance in Portuguese.
These endeavors to oversee sports betting are consistent with prior legislative measures and current Brazilian projects, including the designation of Senator Angelo Coronel as rapporteur for Bill 3626/23, which seeks to create a regulatory structure for sports wagering and internet-based gaming.