Navigating the Brazilian Sports Betting Landscape: A Comprehensive Guide to Regulatory Compliance and Market Entry
Brazils upper legislative chamber has approved legislation to oversee sports wagering and generate funds for the state. This action is significant because it sets the stage for a more regulated and open sports betting sector in Brazil.
The legislation, which requires approval from the lower house to become law, is projected to bring in a substantial R$1.65 billion (approximately US$332.3 million) each year once implemented. The strategy involves imposing a 12% tax on the earnings of digital betting platforms and a 15% levy on players’ winnings. Additionally, businesses seeking to participate will need to pay R$3 million for a license to operate in Brazil.
Although sports betting received legal permission in 2018, it has operated somewhat freely without strict supervision, resulting in a rapid increase of betting companies establishing themselves in Brazil. This new legislation aims to alter that by establishing a structured system for internet-based gaming and wagering. It expands upon previous regulations like Ordinance No. 1,330, which established basic guidelines for operators aiming to provide sports betting services within the country.
This paper details the regulatory, economic, and technological prerequisites for businesses aiming to participate in the Brazilian sports wagering sector. It sets operational benchmarks and stresses anti-money laundering safeguards and user safety procedures.
Importantly, the paper dictates that sports gambling platforms secure accreditation from approved assessment facilities and furnish ongoing client assistance in Portuguese.
These actions are part of Brazil’s wider effort to oversee the sports betting industry, expanding upon prior legislative measures and current endeavors such as Senator Angelo Coronel’s designation as rapporteur for Bill 3626/23, which seeks to establish a comprehensive regulatory structure for sports wagering and internet-based gaming.