With the ratification of a new regulatory framework for igaming and sports betting, Brazil's President Luiz Inacio Lula da Silva has officially made regulation in Brazil official.
The president officially signed Bill 3,626/2023 into law on December 30th.
With the ratification of a new regulatory framework for igaming and sports betting, Brazil's President Luiz Inacio Lula da Silva has officially made regulation in Brazil official.
The president officially signed Bill 3,626/2023 into law on December 30th.
The bill was endorsed by Brazil's parliament of deputies on 21 December, and President Lula later gave his consent. After being removed by the Senate, igaming was reinserted into the law.
Brazilian news outlets state that President Lula blocked a plan to exempt customers with incomes below R$2,112 (about £339, €394, or $425). There is a 15% personal net winnings tax.
Brazilian tax policy
The majority of the 12% tax on operators' gross gaming earnings will go toward sports development. On November 22nd, the Economic Affairs Commission presented their suggestions about taxes.
The new law legalizes fixed odds bets, and operators will be regulated by the country's Ministry of Finance.
Companies will pay R$30 million for up to three names over five years, which is two less than anticipated.
Brazilian governmental mandates
Operators are obligated to provide clients with self-exclusion windows that might be anywhere from one day to six weeks long. In addition, 20% of the company's shares must be held by a Brazilian board member.
Additionally, businesses are required to use facial recognition technology to confirm the age of bettors, who must all be 18 or older.
Publication of operator regulatory rules by the Ministry of Finance is the next stage. Over 130 companies are allegedly considering submitting license applications.
After the initial elimination, it is "only natural" to include igaming.
The senate had earlier removed igaming from Bill 3,626/2023, but it was later reinserted.
The original vote on Senator Carlos Portinho's amendment to remove igaming was 37 to 27. Regardless, the Chamber of Deputies could still reverse the ruling if they so choose. That is precisely what it did by utilizing its force.
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