Brazil Moves Closer to Regulated Sports Betting

In a momentous move for Brazil, President Lula signed off on Bill PL3626/23, bringing the nation one step closer to a regulated sports betting industry. The legislation, published in a special edition of the government's 'Diário Oficial da União,' signals a new era for sports betting in the country, popularly known as 'Bets.' This achievement marks the end of a challenging legislative process, which has been years in the making.

The path to this groundbreaking moment was fraught with obstacles and disagreements. The Workers' Party (PT) government painstakingly revised the bill, which underwent extensive evaluation in Brazil's Senate Committees over several months. More than 100 amendments were made to the proposed legislation before it finally received federal approval. This demonstrates the government's commitment to establishing a modern and comprehensive regulatory framework that aligns with industry trends.

One of the key points of contention revolved around the authorization of online casino operations. However, in a decisive session on December 22, the Chamber of Deputies overwhelmingly voted in favor of the legislation, with 261 votes in favor and 120 against, effectively greenlighting iGaming in the country.

While President Lula endorsed the bill, he introduced vetoes on specific aspects, particularly regarding tax exemptions for betting prizes. The National Congress will review these objections and decide their fate. Additionally, taxation remains a contentious issue, with a proposed 12% tax on licensed operators and a 15% tax on player prizes.

Brazil's Ministry of Finance has reported significant interest from 134 businesses looking to enter the online gambling market. This enthusiasm underscores the anticipation and momentum surrounding the sector. However, it is essential for the local regulator to remain vigilant in creating a fair and safe business environment for the industry's sustainable growth. The official launch of the sports betting industry in Brazil is expected to take place in 2024, marking a new era for the country's gambling landscape.