Brazil lower house passes sports betting bill, amendments include online casino

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Brazil’s Chamber of Deputies has approved sports betting regulation bill set to come into effect in the country next year, but one amendment has brought the possibility of online casino becoming regulated in the process. 

It marks a significant development in the process of establishing a regulated framework for sports betting in Latin America’s largest country and economy, as lawmakers passed the provisional measure signed by President Lula earlier this year. 

Per the bill, operators will be obliged to pay 18% tax on GGR, whilst all licensees will be liable to a 30 million reais fee, which must be paid within 30 days after authorization.

The tax is split up into 2% for social security income, 1.82% for education, 5% for tourism and 6.63% for sports. 

The government’s leader in the Chamber, Jose Guimaraes, took to X – formerly known as Twitter – to exclaim his pleasure in the development of the regulations. 

“We approved the base text of PL 3626/23, a modern and effective matter to combat fraud in sports betting and also put an end to tax evasion,” he wrote. 

“Let’s guarantee more revenue in the Union’s coffers to invest in important projects that improve the lives of Brazilians.

“It will also contribute to increasing the State’s revenue and consequently more resources to finance the national reconstruction project.”

An amendment to the legislation referencing “online gaming” has been added, paving the way for online casinos to be regulated in Brazil. 

The legislation defined online gaming as an “electronic channel that enables virtual betting in a game in which the result is determined by the outcome of a random future event; based on a random generator of numbers, symbols, figures or objects defined in the system of rules” has been added, paving the way for online casinos to be regulated in Brazil. 

A significant moment in the political process, the regulation of online casino would bring even more anticipation for the launch of Brazi’s market, with industry giants such as Entain and Flutter already eyeing the nation as a key growth region. 

The provision would allow online casino games and esports betting in Brazil, despite a full legalization process not taking place. Yet it must be noted that the text stresses the “possibility of exploring online virtual games”.

Adolfo Vianta, the Rapporteur of the bill who proposed the amendments, explained the provision of online casino is “not about launching online games, but about regulating an activity that is taking place at the national level”.

Now the Chamber of Deputies, the lower house of Brazil’s legislature, has passed the bill for sports betting, it will go to the Senate, giving further momentum to Brazil’s push for a regulated framework.