Brazil’s Senate Plenary Could Legalize Sports Betting and iGaming This Wednesday — CasinoGamesPro.com

Brazil’s Senate Plenary Could Legalize Sports Betting and iGaming This Wednesday

Brazil’s Senate Plenary Could Legalize Sports Betting and iGaming This WednesdayNovember 29, 2023, could become a historic date for Brazil’s sports betting and iGaming industry, as the Senate Plenary could vote in favor of Bill 3626/2023, and, eventually, legalize the sector. The journey to this landmark event has been quite a long one and fraught with challenges.

Last Wednesday, November 22, also marked a monumental step toward the legalization of sports wagering and iGaming, with the much-anticipated meeting of the Economic Affairs Committee (CAE) drawing the attention of interested parties.

Initially planned for Tuesday, it was postponed by one day, as requested by Senator Eduardo Girão. Following the committee’s meeting, Bill 3626/2023 was finally approved, which meant it could proceed to the Senate Plenary.

If endorsed tomorrow, sports betting and iGaming in the largest South American country will be officially authorized. Contrary to the suggestions contained in Provisional Measure 1,182, which called for an 18% tax rate, the CAE’s meeting revealed that gambling operators would be subjected to a 12% tax rate.

Distribution of Gambling Tax Revenue

Distribution of Gambling Tax RevenueThe CAE endorsed the lower tax rate, signifying that it was instrumental in attracting businesses and consumers to the freshly regulated sector. The Ministry of Finance will monitor the taxation.

As far as its distribution is concerned, it will be as follows: the largest portion, 36% will go to Brazil’s Ministry of Sports, where it will be reallocated among committees, charities, and national bodies.

The second-largest portion, 28%, will be directed to tourism development and rejuvenation, with 22.4% for the Ministry of Tourism and 5.6% for the Embratur (Brazilian Tourist Board).

The National Fund for Public Security (FNSP) and the Integrated Border Monitoring System (Sisfron) will receive 14% of the tax revenue. Another 10% will be directed to education. Similarly, the social security sector will receive 10%. The Ministry of Health will receive 1% and will be tasked to implement measures to monitor and alleviate social harm ensuing from gambling. Finally, 0.5% will go to civil society agencies, and 0.5% to the Federal Police operational fund.

Players Will Be Subjected to Taxation As Well

Players Will Be Subjected to Taxation As WellFollowing CAE’s meeting, it was confirmed that player prizes would be subjected to a tax rate of 15% on an annual basis. According to the initial proposal of the Ministry of Finance, the rate would have been 30%. However, if the amount of winnings for a period of one year is less than BRL 2,112 (€400), they will be exempt from taxes.

Furthermore, players will have 90 days at their disposal to claim their prizes. If they remain unclaimed, they will be directed to various funds dealing with disaster relief and education. It remains to be seen what tomorrow’s meeting of the Senate Plenary holds for the future of the Brazilian gambling landscape.

Author: Edward Adams