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Brazilian Federal Senate Will Analyse the Sports Betting Draft Law

25 september 2023
Author: James Burton

The text of Bill 3626/23, which is aimed to supervise Brazil's sportsbook industry, was passed to the Federal Senate’s members for review. They will also analyse Provisional Measure (PM) 1.182/2023. While the bill focuses on the management procedures and structure of the bookmaker industry, the initiative considers regulation issues solely.

New Rules in Details

Brazilian sports betting Bill 3626/23

The owners of wagering projects will have to pay 18% of profits for the needs of such spheres and organisations:

  • 6.63% — sports;
  • 5% — tourism;
  • 2.55% — National Public Security Fund;
  • 2% — social protection;
  • 1.82% — education.

Income taxes on end clients' prizes are set at 30%. To register a betting site for the first time, operators will have to pay BRL30 million (nearly $ 6 million). Then, the entrepreneurs access an e-channel (a special application). The money needs to be transferred within a month after authorization. The registration will be valid for 3 years at a maximum. The permit is personal and does not allow for any negotiations or transfers.

Another important part is that the bill, unlike PM, provides for Brazilian firms solely. The businesses must have headquarters and be managed within the country.

Attitude Towards Marketing: Nuances

Some legislators insist on restriction or even completely prohibiting the promotion of sportsbooks. Eduardo Girão is one of the stricter spokespeople regarding the matter. The senator said that the popularisation of wagering activities turned into a potential threat to local players.

The draft law forbids the following:

  • make unsubstantiated manifests about the winning chances or sizes;
  • instil that gambling activities promote personal or public success.

Even with those bans, the bill can be dangerous for people in Mr Girão's opinion. He is determined to work towards the draft law’s cancellation. Senators demand for the text to be checked out by several special committees. Mr Girão tries to patiently and comprehensively weigh everything to prove to his colleagues the potential threat and underdevelopment of the bill.

Casino Market experts can help you open a lucrative gambling project in a prestigious region. We also assist operators with licence acquisition, gaming software integration, payment modules connection and much more.

Contact us to start a legal and profitable journey in the business world.

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