Brazil’s Chamber of Deputies has adopted the government’s gambling law which will govern sports betting and online casinos.
One of the final hurdles has been addressed in the protracted process of regulating online gambling in Brazil with the passing of the bill.
The Federal Senate will now review the bill and provide comments within 45 days.
The government applauded the act’s approval, with lower house leader Jose Guimaraes stating that the bill “will be an important step towards ending or reducing tax evasion” in the nation.
In a post on messaging service X, formerly known as Twitter, he stated that it “will also contribute to increasing the State’s revenue and, consequently, more resources to finance the national reconstruction project.”
The law does, however, continue to legalize sports betting in addition to online casinos. Due to a particular exemption from the new laws, betting on fantasy sports will continue to be unlawful.
Some Components of the Bill:
Licenses for foreign operators are not granted: Foreign businesses are prohibited from providing regulated gaming under the proposed law. Only companies who are legally incorporated in Brazil and have their headquarters and administrative offices there may conduct business there.
Along with meeting a number of other technical standards, operators will also need to have a minimum amount of share capital and belong to a sports integrity organization.
Companies must pay an 18% revenue tax: The 18% revenue tax is still in effect. However, given what Viana suggested yesterday, the percentages of the gaming revenue that are allocated to the various charities have been changed.
Instead of 10% of the money, social security will now receive 2% of it. In the meantime, 5.0% is set aside for tourism, 6.63% for sports, and 1.82% for the Ministry of Education.
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The R30 million (£4.89m, €5.69m, or $6.10m) license cost does not change. An operator is given permission to offer gaming through one betting app with each payment; any further offerings require a different license. Additionally, the measure shortens the license period from five to three years.
Additionally, the legislation mandates that businesses have internal controls and anti-money laundering and counter-terrorist funding programs. Companies must also follow regulations requiring safer gambling.
Prohibition on bonus bets:
The proposed regulation prohibits operators from giving clients bonus bets, even if they do so as part of a promotion. The bill prohibits companies from providing bettors with any credit lines.
Companies without a license are prohibited from advertising under the new regulations. The advertisements that are published must also adhere to the new rules. Following a directive from the Ministry of Finance, businesses, internet service providers, and websites are required to delete ads that are deemed to be in violation of these rules.
The legislation forbids senior leadership of an operator from placing bets as well. Regulators, anyone under 18, and participants in sporting events are also prohibited.
New payment regulations will fight illegal markets:
New payment regulations are also included in the law to stop offshore gambling. Only organizations that have been approved by the Central Bank may provide payment services.
The only bank account to which a player can transfer funds from their betting account is one with its headquarters and management in Brazil.
A significant turning point in this process was the Chamber of Deputies’ approval of the bill. Currently, the only obstacle to Brazil’s legalizing online gambling is getting it past the Federal Senate.
