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Regulation of the sports betting sector in the Senate
The Brazilian Institute of Responsible Gaming (IBJR) recognizes the important advance in regulation for the iGaming sector in Brazil with the approval of Bill 3626/23 at the Economic Affairs Commission (CAE) last Wednesday (22), which will now proceed to the plenary of the House.
The approved project authored by rapporteur Senator Angelo Coronel (PSD-BA) reflects the fluid debate with the government and our sector.
Taxation, one of the points of instability and insecurity for companies operating in the online gaming and betting ecosystem, is received as a positive change that is in line with Brazil's economic scenario, which should attract a greater number of operators to the Brazilian market.
The project that regulates and taxes the sports betting and online casino production chain has modified initial guidelines. The previously proposed 18% rate has dropped to 12% of GGR, a percentage more in line with building a sustainable and safe betting industry for the country in the medium term.
The IBJR highlights the potential of regulation to expand the formal Brazilian market, with adequate tax collection, promoting the safety of operators and players, enabling the entry of new companies and opening paths for Brazil to consolidate itself as a reference in the sector.
Other positive points of Bill 3626/23 are: maintaining the Chamber's text on the operation of online casinos in the country; the period of authorization for the operation of betting houses lasting 5 years; the inspection fee, previously charged progressively on the value of the premiums, is now subject to fixed taxation attributed to the value of the GGR – the progressive form remains.
Another highlight in taxation was the reduction in income tax (IR) on prizes won by players, who will pay 15% on the entire prize, half of the initial proposal (30%). With approval, it is up to the Plenary to sanction all improvements prepared by the Economic Affairs Committee.
Brazilian Institute of Responsible Gaming (IBJR)
