Brazil is on the verge of officially launching a federal marketplace for sports wagering and online casino games, as the legislation has been approved and sent for federal signature. The bill, known as PL3626/23, was validated at the last session of the Chamber of Deputies and will now be sent to President Lula da Silva for approval.
The bill faced some opposition in the Senate, with debates centered around the inclusion of online casino games. After being sent back to the Chamber of Deputies, the Senate excluded online casino modalities and made over 100 modifications to the bill’s text.
During the last voting session, Evangelical deputies and the opposition tried to remove a provision related to online games, but the attempt was unsuccessful as a majority of lawmakers voted for the retention of online games.
The tax and fiscal structures suggested by the Brazilian Senate’s Economic Affairs Commission have been kept, with operators required to pay a 12% tax and players’ rewards subject to a 15% tax. In addition, a portion of the revenues will be set aside for social security, tourism, and sports sectors.
A federal license for operators will cost BRL 30m and will be valid for five years, with operators allowed to manage a maximum of three brands. Both domestic and foreign businesses are required to have a permanent presence in the country and have a member from Brazil on their Board owning a minimum of 20% of the share capital.
The Ministry of Finance will supervise the federal sports wagering market and set up a watchdog for consumer protections, standards, and conduct. Advertising that portrays gambling as an attractive activity is forbidden, and measures are in place to protect sports integrity.
Despite facing opposition, the bill’s approval signals an important step in the legalization of sports wagering and online casinos in Brazil. The new framework aims to ensure responsible gambling and protect the integrity of sports while generating significant revenue for the country.