Lawmakers ratified a new regulatory framework for legal sports betting in Brazil. President Luiz Inacio Lula da Silva passed Bill PL3626/23 into law last December 30. Also, it came after the country’s Chamber of Deputies endorsed the bill on December 21.
According to bookie pay per head experts, the Ministry of Finance must create regulatory frameworks within six months. The ‘Betting Bill,’ first drafted by Michel Temer in December 2018, reached a stalemate until its approval broke the impasse. Bolsonaro, Brazil’s previous president, had postponed his federal sign-off last year owing to staunch Catholic opposition to the law.
Last September, the measure was evaluated by Brazil’s Senate Committees after being altered by President Lula’s Workers’ Party. Before being authorized, such an examination resulted in over a hundred revisions.
Legal Sports Betting in Brazil
After the Senate deleted it, the most recent version added iGaming and a tax on wins. With this statute in place, the Brazilian federal government stands to gain about $610 million annually in tax revenue.
Licensed operators are subject to a 12% tax, while bettors must pay a 15% tax on profits over R$2,112. Companies must shell out R$30 million to secure a government license to run three brands for five years. The only businesses eligible to apply for licenses are those with a Brazilian headquarters or a Brazilian-based legal guardian. In addition, regulations required the operator to have a Brazilian board member holding twenty percent or more of its shares. People still have plenty of time to learn how to be a bookie in Brazil.
Sports betting has always been allowed in Brazil. However, the country’s lack of a regulatory structure has kept the industry in its infancy. According to pay per head services experts, companies will be required to establish a physical presence and pay income taxes under the new rule, which will undoubtedly increase tax revenue for the government.
The latest in a string of successful sponsorship deals between Brazilian Serie A clubs and sports betting companies is the record-breaking jersey sponsorship contract announced by domestic heavyweights Corinthians with VideBet earlier this week.
