A new bill has been passed by the Brazilian senate which could open the door for the formation of a […]
The post Brazil senate greenlights sports betting with new legislation appeared first on ReadWrite.
A new bill has been passed by the Brazilian senate which could open the door for the formation of a regulated sports betting market in the country.
However, while the legislation encourages a sports betting market, it refused to endorse a move toward establishing an igaming market.
The bill was approved in September, however, the Senate has been tinkering with it since then. The revised version will now return to the Chamber of Deputies for review.
Companies seeking to operate in the sports betting market in Brazil must now secure a specific license for either online or in-person betting – or a combination of both. These licenses – issued by the Ministry of Finance – are valid for five years and could cost up to BRL30 million ($6 million US).
To be eligible for a license, companies must meet a list of certain criteria. They must have their headquarters and administration located in Brazil. They must adhere to cybersecurity and technical standards. Lastly, they must appoint a member with expertise in the field and establish internal control measures for customer service.
There has also been a reduction on the tax these companies will pay. Sports betting companies in Brazil will pay 12% tax, despite some lawmakers pushing for 18%.
In terms of bettors winnings, a proposal of reducing tax from 30% to 15% raised financial implications for the federal government. At first, it anticipated revenue between BRL2 million and BRL6 million ($402,600 to $1.2 million) in 2024, but now has to settle for around half that amount.
Also featured in the bill, was the requirement of betting companies to establish a free customer service channel. As reported by Casino.org, the use of celebrities to promote betting is prohibited as well.
Online betting remains a well-fuelled debate in Brazil. Interestingly, a similar debate is taking place in Australia as they recently passed a bill tightening restrictions on online betting.
But in Brazil, the inclusion of virtual betting in the bill – such as virtual blackjack, slots or roulette – caused some delays to its passing. However, as a result of recent investigations into a popular online slot machine game called Fortune Tiger revealed that a number of players emptied their life savings into the online game.
Consequently, this led to the removal of virtual betting from the bill.
Featured Image: Caio on Pexels
The post Brazil senate greenlights sports betting with new legislation appeared first on ReadWrite.
