Brazil's Chamber of Deputies Approves Online Gambling and Sports Betting Bill

Sports betting and online gambling may soon become a reality for Brazil, thanks to an important decision made by the country's Chamber of Deputies. During a recent voting session, the Deputies approved Bill 3,626/2023, a proposal aimed at regulating sports betting and online gambling activities. While the Senate had previously approved the sports betting aspect of the bill but rejected the online gambling component, the Chamber of Deputies' vote has breathed new life into the legislation.

The latest vote saw 261 Deputies in favor of online gambling, outnumbering the 120 who voted against it. This development reinstated the bill's iGaming provisions, effectively overturning the Senate's decision. Now, Bill 3,626/2023 awaits final approval, with President Luiz Inácio Lula da Silva being the last hurdle. If the president signs off on the proposal, Brazil will be on the cusp of legalizing both iGaming and sports betting.

Originally, the proposed bill outlined an 18% tax on revenues for betting and iGaming operators. However, the latest version of the proposal has reduced this tax rate to 12%. Additionally, bettors will face a 15% tax on their winnings.

Similar to other gambling markets, Brazilian operators will be required to pay a license fee of BRL 30 million ($6.1 million) to operate up to three brands for five years. The regulation of gambling activities will fall under the jurisdiction of the country's Ministry of Finance.

This significant progress in gambling legislation coincides with another decision by the Chamber of Deputies, which voted in favor of a proposal to restrict social media influencers from promoting unregulated gambling websites. This move aims to reduce the influence of the black market in the country's gambling industry, further highlighting Brazil's commitment to regulating this sector.