Brazil's Senate Advances Bill to Regulate Online Betting and Casinos
Date: 2023-11-23 Author: Dima Zakharov Categories: EVENTS
Reduced Taxes Proposal:
The approved bill suggests a 12% tax on companies in the sector and a 15% tax on bettors' winnings, a slight reduction from the Ministry of Finance's initial proposal. The committee has expedited a vote on the proposal, already approved by the Chamber of Deputies, potentially taking place in the Senate's main plenary session.
Optimism for Plenary Vote:
Senator Angelo Coronel, the bill's rapporteur, is optimistic about a plenary vote happening next week. The regulations cover fixed-odds bets on real sporting events and online gaming events, aiming to become a significant revenue stream for Brazil without increasing public debt.
Compliance Measures for Online Betting:
The proposed legislation focuses on rigorous compliance measures for online sports betting and casinos. The authorization process involves a thorough evaluation by the Ministry of Finance, considering documentation, company reputation, and technical and financial capacity.
Brazilian Involvement Requirement:
To ensure local involvement, the rapporteur recommends that at least 20% of a company’s social capital be held by a Brazilian citizen. Those associated with betting houses face restrictions from engaging in various sectors, and accreditation requires a licensing fee of up to BRL30 million ($6.1 million) in Brazil, valid for three commercial brands over five years.
Restrictions and Security Measures:
Restrictions extend to individuals under 18, betting house personnel, public officials, and those with gambling addiction. Facial recognition technology for player identification is mandated, with oversight falling under the Ministry of Finance. The legislation emphasizes security measures, auditable systems, and actions against money laundering and terrorism financing.
