In December 2023, the Brazilian Senate approved gambling regulations that apply to both bookmakers and online casinos. This event finally legalized gambling throughout Brazil, initiating a series of changes, mainly financial, that aim to make the sector one of the pillars of the state's economy thanks to taxes on suppliers and revenues from all types of games. online casinos, including those that offer slots with sign-up bonuses. The population watched with great enthusiasm the entry into force of the new online casino rules, which guarantee an increasingly safe and fair gaming market.Economic potential of the new training landscape The economic and social potential of the new regulations will contribute significantly to tax revenues and employment opportunities. Official estimates put the value at around R$10 billion per year, with an additional R$4 billion every 5 years in licensing costs. This could mean that legalizing gambling brings around $2 million a year into state coffers through operators alone.
Players' income tax regime Furthermore, taking into account the taxation of players' income, it is expected that they can double their annual earnings, reaching around 4 million per year. In fact, the new rules of the game have decided that winnings will be taxed at 15%, while operators will be taxed at 12%.
Licensing Scenario Proposed by the Government In relation to the purchase of licenses, the Government decided that anyone wishing to obtain them must pay R$30 million, which corresponds to approximately US$6 million. The license is valid for 5 years and, in addition, operators must provide initial capital of at least R$100,000. Foreign entrepreneurs who intend to obtain a license in Brazil must have a Brazilian partner who holds at least 20% of the company. Added to this is the creation of a delegated office just for license verification, whose function is to carefully check all documents to avoid possible tax fraud. At the heart of the new regulations is taxation, which allows the State to share tax revenues between several sectors, including education, public health, tourism, sport and social security. It is also assumed that unclaimed prize money will go directly to student funds.
This 360-degree approach allows for a structured operation that becomes increasingly detailed over time. In addition, advertising guidelines have also been issued, the provisions of which contain several points, including the mandatory inclusion of risk warnings, the prohibition of misleading advertising and the explicit prohibition of language directed at minors.
Revenue Expected by the Brazilian Government in the Brazilian Gaming Market In the next three years, revenue from the Brazilian Igaming market is expected to exceed R$100 billion, or approximately US$200 million. It is believed that the majority of this revenue could come from tourism as more and more companies consider investing in foreign gambling markets and Brazil appears to be one of the best with its legislation at the moment. Working in a regulated market provides much more security and trust in the various companies in the sector and greater credibility offered to the player who wants to bet.
Legislation that promotes the development of the sector These new laws were created, therefore, to allow the growth of the Brazilian market, mainly with investors from other countries in mind. However, if we think about consumers, the government has taken great care to protect them from all angles. Operators must first track players' wins and losses within a certain amount and also receive support through local payment methods to gain more control over income and expenses. Through these analyses, we can safely say that the Brazilian IGaming sector is prepared for continued growth in the coming years, mainly due to technological developments and new legislation.