Brazil President Lula da Silva has signed the legislation into law
Brazil has sorted out everything related to the country’s sports betting and iGaming market after approving a new regulatory framework. On December 30, President Luiz Inacio Lula da Silva signed Bill PL3626/23 into law after Brazil’s Chamber of Deputies approved it on December 21.
The authorization ends a standoff of the ‘Betting Law’ created in December 2018 after former president Jair Bolsonaro refused to sign off on sports betting in 2022 because of extreme resistance from Brazil’s Catholic church.
President Lula’s Workers’ Party then modified the bill, which was evaluated last September by Brazil’s Senate Committees and led to the addition of over 100 amendments before it was passed. The latest rendition includes a tax on winnings and iGaming after earlier being withdrawn by the Senate.
The Ministry of Finance now has six months to build the regulatory framework for the new law that expects to bring in over R$3 billion ($610 million) in annual tax revenue. Bettors must pay a 15% tax on winnings above R$2,112 ($429), with licensed operators required to pay a 12% tax.
Businesses will pay R$30 million ($6.096 million) for a five-year federal license, which authorizes them to operate three brands. Licenses will be limited to providers headquartered in Brazil with a legal guardian established in the country.
Operators must also have a Brazilian board member who holds a minimum 20% share of the company’s capital. Regulations require operators to provide customers with self-exclusion options ranging from 24 hours to six weeks and verify the identity of bettors over 18 years old using facial recognition software.
