Brazil legalizes sports betting and iGaming, expected to launch by end of 2024
During the holidays, Brazil officially approved sports betting and online casino gambling in the world's seventh most populous country.
President Luiz Inácio Lula da Silva signed Law 3626/23 on 30 December. Brazil's National Congress earlier this month backed expanding gambling.
The legislation provides for an effective tax rate of 12% on gross revenue generated by sports betting and iGaming operators. The law also requires bettors to share 15% of their winnings with the federal government.
When signing the gambling law, da Silva amended the regulations to remove a provision that would have allowed players to fully keep winnings of up to 2,112 reais ($435).
Online bookmakers can apply for iGaming and online Sports Betting Rights. Once approved, the concession would cost $6 million and would be renewed every five years. The licensee must establish a physical presence in Brazil to offer online casino games and sports betting.
"Fixed-odds sports betting is a bet where the bettor knows exactly what the payoff will be when placing the bet and it relates to a sporting event. The new law will regulate: virtual betting, land-based betting, real sporting events, online gaming and online virtual gaming events," said a statement from da Silva's office.
Brazil expects gambling liberalization to generate more than $2 billion in new tax revenue annually when it is ready to hit the market.
The rules are as follows
With da Silva signing the Online Betting and Sports Betting Law, the Treasury has been tasked with drafting regulations that will govern its future operations. The government agency was also ordered to take measures to prevent money laundering, the financing of terrorism and the "proliferation of weapons of mass destruction."
These regulations will take some time to finalize. The Brazilian government expects gambling to begin sometime in the "second half of 2024."
Most other forms of gambling remain illegal in Brazil. There are no casinos with slot machines or table games with bank accounts, but poker is considered a game of skill and is therefore allowed. Brazil also operates a lottery called Mega Sena. Non-profit organizations also allow some forms of bingo.
Online gambling and sports betting represent the biggest expansion of Brazil’s gambling industry in decades. Experienced operators are expected to consider bidding once regulations are established.
Although Brazil's per capita income last year was only $17,260, it is still considered an "upper-middle-income" market, according to World Bank data. Brazil has a population of over 203 million people.
Attractive Market
To understand how tempting it is for gambling operators to enter Brazil, consider that a few years ago billionaire Sheldon Adelson traveled to the South American country to lobby heads of state and government to allow gambling in casinos. Adelson died in 2021 at the age of 87.
When asked during a 2018 trip to St. Paul why he came to the city, Adelson didn't mince words.
Consider investing in one or more integrated resorts,” Adelson responded.
The billionaire's visit comes as lawmakers consider legalizing commercial casinos. That push never materialized, and Adelson never realized his desire to bring the Las Vegas Sands empire to South America. However, new legislation authorizing land-based casinos is underway.
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Source: www.casino.org
