The Brazil Senate rejected an iGaming measure, but its counterpart is determined to see it through
A vote is expected this week in the Chamber of Deputies on whether online casinos will be part of a proposal to regulate sports betting. This follows a move by the Senate that stripped online gaming out of a recently approved sports betting bill.
The legislation is one of the federal government’s top priorities as it aims to increase tax revenue to reach the fiscal target in 2024. The law has the capability to raise around R$2 billion (US$411 million) next year.
The Chamber approved the bill in September. However, text modified in the Senate reduced the rate and excluded online casinos. Deputies are expected to reinstate online casino games in their proposed regulations.
However, online casinos weren’t part of the government’s original proposal and were added by the Chamber. The Senate blocked that section, with parliamentarians noting that the project doesn’t detail how inspection of these activities should be handled. Senators also reduced the rate for betting operators from 18% to 12%.
The income tax (IR) rate on winnings also fell from 30% to 15%, which bettors must pay on prizes valued above R$2,112.00 ($434). Senators also reduced the IR rate on prizes won playing fantasy sports from 27.5% to 15%.
Other elements of the bill were maintained, as well as the fee for authorizing betting houses to operate in Brazil of up to R$30 million (US$6.16 million) paid to the Ministry of Finance for a five-year license. The betting proposal also stipulates that advertising, communication and marketing efforts must comply with rules laid out by the Ministry of Finance. In addition, games are also required to promote responsible gambling, participation only by persons of legal age and warn bettors about the dangers of excessive gambling.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
