1win Partners analyzes iGaming regulation in Brazil and the opportunities that change will promote

The iGaming sector has grown exponentially in recent years. However, the absence of clear and comprehensive regulation was limiting the development of this market. In this article by 1win Partners, we will explore iGaming regulation in the country, highlighting the relevant law, its most important sections, and the expected impact on the industry.

The law and its main sections

iGaming regulation in Brazil is addressed by Law No. 14,790/2023, which was enacted on December 29, 2023. The law establishes the legal framework for the operation and control of iGaming companies in the country.

• Licensing and supervision: The law mandates that all iGaming companies must obtain a license from the regulatory body. This body will be responsible for monitoring and supervising the activities of operators, ensuring the integrity of games and the protection of players.

“i. 22% (twenty-two percent) for sports practice organizations in the football modality in return for the use of their denominations, their brands, their emblems, their hymns, or their symbols for the dissemination and execution of the specific prognosis contest;”
 

• Taxes and fees: The regulation establishes a tax structure for the sector, imposing taxes and fees on iGaming companies. These fiscal obligations aim to both raise revenue for the government and prevent tax evasion and illegal activity.
   
• Consumer protection: The law also provides measures for consumer protection, such as restrictions on who can or cannot play, such as minors for participation in games; public agents working directly with regulation; identity verification requirements, and the implementation of mechanisms to prevent gambling addiction.
   

Expanding market: With regulation, iGaming becomes a rapidly growing sector, attracting national and international companies seeking to reach the Brazilian audience. This opens doors for new investments, jobs, and significant tax contributions.

1. Player protection: Regulation will provide a legal framework to ensure the integrity of games and the safety of bettors. Consumer protection measures aim to minimize risks, prevent fraud, and prevent gambling addiction, promoting a safer experience for players.
    
2. Combating illegality: With regulation, the iGaming market in Brazil will become more transparent and subject to national laws. This will help combat illegal activity, ensuring that players are dealing only with legally operating companies and reducing the risks associated with unregulated sites.
    

Financial impact

Although it is difficult to predict an exact profit value for the iGaming sector with regulation, it is expected to be substantial. According to estimates, the legalization of iGaming in Brazil could generate millions of reais in tax revenue, as well as stimulate investments in infrastructure, marketing, and related technology development.

Conclusion

The regulation of iGaming in Brazil represents an important step towards the consolidation of the sector in the country. With comprehensive legislation and consumer protection measures, the market is expected to grow positively, creating jobs, attracting investments, and contributing to tax revenue.

However, it is essential for regulatory authorities to closely monitor the implementation of the law and take actions to prevent illegal practices and ensure the integrity of games.

The Ministry of Finance is yet to publish how companies can acquire the license and what the prerequisites are for this. 1win Partners continues to monitor all developments in the law.

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Source: 1win Partners