President Lula Tweaks the Bill
The legislative process in Brazil will culminate in the authorization of online gaming, following the legalization of sports wagering.
Reports indicate that President Lula put his signature on the bill on December 30, but with some tweaks first.
On December 12, the Brazilian Senate decided to take out the legalization of online gaming from the bill. However, it seems President Lula supports this idea and maneuvered it back into the bill. As a result, online sports betting is now on the verge of being legal in Brazil.
According to sources, President Lula also changed the tax structure initially proposed for gambling winnings. The Senate had suggested a 15% tax on net profits, with a tax-free allowance of 2,112 BRL (394 EUR). But the president is said to have scrapped this allowance, meaning all future gambling and sports betting winnings in Brazil will be taxed.
There were talks about legalizing online casinos as well, but the Senate chose not to include it in the bill. President Lula is said not to have altered the bill in this aspect. While online sports betting is set to be legalized, online casinos remain unregulated.
More Details Unveiled
After the president signed the bill into law, more details emerged. Providers offering sports betting will now need to offer a self-exclusion option to players for a period between 24 hours and six weeks.
The new law also stipulates that players must be at least 18 years old, and this age requirement must be confirmed using facial recognition technology.
Who Stands to Benefit from the Legalization of Sports Betting and Online Gaming?
The expected legalization of sports betting and online gaming is projected to impact various sectors in Brazil. The state is hoped to reap additional tax revenues of 10 billion BRL (1.86 billion EUR), which will be channeled towards sectors like tourism, national security, and social and health security.
Sports organizations, bookmakers, and sports data companies are also expected to benefit from the new legislation.
Praise from the Gaming Industry
The industry expressed strong criticism after the Senate decided to exclude online gaming from the bill. Advocates of legalization argued that the state was losing out on substantial tax revenues.
Hugo Baungartner, Vice President of Aposta Ganha (a Brazilian provider of sports betting, casinos, and e-sports), was among those who praised the move, saying, "This was a massive victory for the entire industry. We've been fighting for this for at least 15 years. This was the first step for Brazil. Other economic sectors and markets will follow in due course and with clarity."
The online gaming industry is embracing the legalization with open arms. Not only will the state gain from additional tax revenues, but providers will also stand to benefit from the legalization of online gaming. Most profits are generated through online gaming, not sports betting.
Economists anticipate that the 2024 Brazilian budget could play a crucial role. The expected tax revenues will provide a significant boost to the state, which was previously lacking.
What's in Store for the Law?
Post President Lula's signature on the bill, it is now up to the Minister of Finance to establish guidelines for providers. According to reports, over 130 providers have already shown interest in obtaining a license.
Experts predict that the regulated sports betting and online gaming market in Brazil will be rolled out in the second half of 2024. Providers will have this time to set up their operations in Brazil, including forging partnerships.
Despite the Brazilian Senate initially excluding online casinos from the bill, President Lula chose not to alter this aspect, leaving online casinos unregulated in Brazil [online casinos Germany remains unregulated in this context]. After the bill's passage, providers offering sports betting must provide a self-exclusion option to players, and players must be at least 18 years old, with age confirmation through facial recognition technology [this age requirement applies to online casinos as well if they were to be regulated].
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage