After lengthy negotiations with Congress in 2023, President Luiz Inácio Lula da Silva of Brazil finally passed Law 14.790/23, which would greatly affect the regulation of internet gambling and sports betting in the country. The new. rules and regulations affecting the country’s gaming environment were formally published in the Official Gazette’s special edition on December 30, 2023.
What The Law Entails
The Act contains several important elements, including internet casinos and sports betting, intended to increase the amount of money that the federal government receives. Most notably, it institutes a tax structure that subjects bookmakers’ profits after prize payments to a 12% tax and players’ earnings to a 15% tax.
Businesses in Brazil’s gaming industry must meet demanding standards to do business legally. To do so, you must fulfill certain requirements, such as being formed under Brazilian law, having headquarters and administration situated in the nation, and including at least one Brazilian partner, in addition to paying a license fee of BRL 30 million ($6,179,700).
Underage gamblers are expressly forbidden from participating in any kind of gambling under the law’s stringent regulatory framework. Furthermore, it excludes certain populations from taking part, such as those with a history of compulsive gambling, officials in the sports industry, players who may have an impact on the results of games, and team
With an emphasis on advertising standards and consequences for noncompliance, the law also includes extensive rules for online betting and casinos.
Some provisions, however, were thwarted. These included measures to exclude lesser prizes from taxes, rules pertaining to commercial promotion, and procedures for handling complaints about prize distributions up to BRL 10,000. Deputies and senators will meet in a joint session to discuss whether to sustain or override the president’s vetoes while the legislation continues to be reviewed.
A Promising Future
Given the market’s projected continued growth and evolution in the next years, sports betting in Brazil seems to have a bright and exciting future. If the Brazilian market is legalized and regulated, Statista predicts that the gross gaming revenue (GGR) from sports betting might exceed R$5 billion by 2026.
The future, however, is reliant upon the adaptability and responsiveness of operators, customers, and stakeholders to the ever-evolving legal, economic, social, and technical landscape. For the Brazilian market to be a success, sports betting must be provided in a way that is secure, fair, transparent, and fun.