Brazil's Chamber of Deputies Approves Gambling Regulation, Including Online Gaming
Date: 2023-12-23 Author: Dima Zakharov Categories: CASINO
Brazil's Chamber of Deputies Gives Green Light to Online Gambling Regulation
Brazil's chamber of deputies voted on December 21, 2023, to approve Bill 3,626/2023, a crucial piece of legislation that paves the way for the regulation of sports betting and online gaming. This landmark decision follows the earlier approval of the bill by the senate plenary on December 12, 2023.
The Final Steps in the Regulatory Process
Now that the chamber of deputies has given its nod, the bill will be forwarded to President Luiz Inacio Lula da Silva for the final approval, expected to be a formality. However, the journey to reach this point has been far from straightforward.
Debate and Amendments
Senator Angelo Coronel introduced the bill to the senate on December 12, containing a series of amendments following the initial approval of the bill three weeks prior by Brazil's Economic Affairs' Commission. The bill faced significant opposition in the senate, leading to votes on several critical aspects.
Taxation and Licensing
One of the crucial points of contention was the taxation of the gambling industry. The bill's approval means that gross gaming revenue (GGR) will be subject to a 12% tax rate, down from the originally proposed 18%. Additionally, bettors will be taxed at a rate of 15% on net winnings, exceeding a threshold of BRL2,112.
Return of Online Gaming
The most notable change during the debates was the exclusion of online gaming from the bill, a move made by the senate. However, the chamber of deputies retained the authority to overturn this exclusion, ultimately leading to its inclusion.
The Debate Continues
The debate surrounding the bill and its amendments highlighted the differences in opinion among legislators. While some argued for the inclusion of online gaming to ensure proper regulation and taxation, others expressed concerns about potential social consequences.
Economic Impact
The approval of the bill, including online gaming, has significant economic implications for Brazil. The country had initially set a target of BRL1.6 billion in tax revenue, with the exclusion of online gaming risking falling short of that goal.
The Road Ahead
Assuming the bill receives final approval from the president, a significant portion of the tax revenue will be directed towards sports, tourism, public safety, education, and social security initiatives.
Regulation and Compliance
The bill outlines various requirements for operators, including the need for a Brazilian partner holding at least 20% of the company's capital in the country, cybersecurity measures, and the implementation of identification processes, potentially using facial recognition technology.
A Long and Winding Journey
Brazil's path towards legalizing sports betting and casinos has been a complex and evolving one. The latest developments bring the country closer to establishing a regulated gambling industry, with the potential to contribute significantly to the economy.
The approval of Bill 3,626/2023 signifies a major milestone, but the journey is far from over as Brazil moves closer to a regulated and thriving gambling sector.
