Brazil increased access to online betting markets by 75% in 2022, making the country the global leader.
According to Similarweb, a data analytics company, Brazil is generating roughly R$45 billion annually in the online betting sector. That puts the nation just ahead of the UK, making Brazil the new global market leader.
This is great news for the companies serving the largest country in South America. It’s also a wonderful development for the country itself, which may soon be getting a cut of the proceeds.
Brazil’s lengthy journey to legalization
In most countries, gambling legalization and regulation go hand in hand. In Brazil, however, fixed-odds sports betting was legalized in 2018 — without the necessary regulatory framework.
It wasn’t until March 2023, at the urging of Brazil’s Minister of Finance, that Brazil’s legislators took up the regulatory cause. Originally envisioned to only regulate and tax online sports betting, hopes grew that Bill PL 3626/2023 would also include iGaming.
The addition of iGaming, however, was a point of contention, stalling the bill’s approval. Brazil’s Chamber approved the legislation in September, but it languished in the Senate. Just last week, the Senate postponed another hearing of the bill.
Concerns arose that the Senate might not pass it before the holiday recess, potentially missing the deadline for the 2023 legislative session. However, the Brazilian Senate ultimately approved the bill on Tuesday. So, it might not be long before the online betting market leader finally sees the fruits of its labor.
Once passed into law, regulated operators will be required to pay a $6 million fee for a five-year license. They will also pay a tax rate of 12 % on revenues. Meanwhile, there will be a 15% tax rate on individual winnings.
The Senate’s version of the bill did not, however, include provisions for iGaming. Proponents of legalizing online casinos will weigh their options in subsequent legislative sessions.
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