Brazilian Lower House Approves Sports Betting Regulation Bill
In a significant development, Brazil’s lower house has approved a bill aimed at regulating sports betting, potentially boosting the country’s 2024 budget by more than 1.65 billion reais ($335.65 million).
The bill has now advanced to the Senate for further consideration.
Government’s Response
The government has welcomed this approval, with Jose Guimaraes, the leader in the lower house, emphasizing that the bill represents a crucial step in combating tax evasion within the country. He stated that it will not only help curb tax evasion but also increase the government’s revenue. This additional revenue, he noted, will contribute to financing national reconstruction projects.
The approved bill covers various aspects of sports betting and online casinos within Brazil. Notably, it introduces an 18% tax on the net revenue generated by online betting companies operating within the country.
Allocation of Tax Revenue
The tax revenue collected from this industry will be allocated to various sectors, including tourism, sports, education ministries, the National Public Security Fund, social security, as well as sports organizations and confederations. This allocation is designed to support and enhance these vital areas of Brazilian society.
Furthermore, the bill establishes that companies seeking to operate in the country’s sports betting and online casino sector will be required to obtain a grant. These grants can be worth up to 30 million reais and will be valid for a three-year period.
In summary, the approval of the sports betting regulation bill in Brazil’s lower house marks a significant milestone in the country’s efforts to regulate this industry. If passed in the Senate, it is expected to provide much-needed revenue and contribute to the nation’s ongoing development and reconstruction projects.
