Brazilian government nears publication of online gambling regulation

The Brazilian government is on the verge of finalizing the long-awaited Provisional Measure that will regulate online gambling in the country. After three months of anticipation, the executive branch has assured the public that the measure will be published in the Official Gazette before the end of this month.

Provisional Measure will come out before the end of June?

Around a month ago, Fernando Haddad, the Minister of Finance, presented a proposal to the Civil House that details the taxation plan for online gambling companies.

If the proposed regulation is passed, these companies will be obliged to contribute 16% of their revenues to the government. This move is anticipated to generate roughly BRL 15 billion (equivalent to $3 billion) in yearly revenue for the Brazilian treasury.

However, current estimates suggest that the actual figure will be significantly lower, with government officials anticipating a range of BRL 1 billion to 2 billion.

BRL 10 billion revenue without taxation

Currently, there are about 3,000 sports betting websites functioning in Brazil, all of which are based overseas. These websites generate roughly BRL 10 billion ($2.08 billion) in yearly revenue without facing any taxation.

The upcoming release of the Provisional Measure is a crucial move towards the regulation of online gambling in Brazil. It is anticipated to enhance transparency, generate tax revenues, and improve supervision in the realm of digital gambling.

After being officially announced, the new regulations will offer clear guidelines for both operators and gamblers in the country, ensuring transparency and fairness in the industry.