In December 2023, the Brazilian Senate approved gambling regulations that apply to both betting and online casinos. This event finally legalized gambling throughout Brazil, initiating a series of changes, notably financial, that will aim to make the sector one of the pillars of the state's economy, thanks to the taxes that will be charged to suppliers and the revenues from all types of games. games. online casinos, including those that offer slots with sign-up bonuses. The population has seen with great enthusiasm the entry into force of new rules for online casinos, which will guarantee an increasingly safe and fair gaming market.The 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 speak of figures of around R$10 billion per year, to which is added R$4 billion every 5 years for licensing costs. This could mean that legalizing gambling would bring around US$2 million per year to the State's coffers, through operators alone.
The tax regime on players' income Furthermore, taking into account the taxation on players' income, it is expected that they will be able to double their annual income, reaching a forecast of 4 million per year. In fact, with the new rules of the game, it was decided that winnings would be taxed at 15%, while traders would face a 12% tax rate.
The licensing scenario envisaged by the government In relation to the purchase of licenses, the government decided that whoever wants to obtain them will have to pay R$30 million, which corresponds to approximately US$6 million. The license will be valid for 5 years and, in addition, operators must guarantee an initial capital of at least R$100,000. Foreign operators considering acquiring a license in Brazil must have a partner of Brazilian nationality who holds at least 20% of the company. Added to this is the creation of an office delegated exclusively to control licenses, which will have the task of carefully checking all documents to avoid possible tax fraud. Taxation is at the heart of the new regulations, which will allow the State to distribute tax revenues between several sectors, including education, public health, tourism, sport and social security. It is also expected that unclaimed prize money will go directly to student funds.
This 360-degree approach allows for a structured operation that will become increasingly detailed over time. In addition, advertising guidelines have also been published, with provisions that include several points, including the mandatory inclusion of risk warnings, the prohibition of misleading advertising and the explicit prohibition of the use of language aimed at minors.
Expected Brazilian government revenues from the Brazilian gaming market Over the next three years, revenues from the Brazilian online gaming market are expected to exceed 100 billion reais, or approximately 200 million US dollars. It is believed that the majority of this revenue could come from tourism, as more companies consider investing in foreign gambling markets, and Brazil, with its legislation, currently appears to be one of the best. Working in a regulated market brings much more security and trust in the various companies in the sector, as well as greater credibility offered to the player who intends to bet.
Legislation that facilitates the development of the sector This new legislation was created, therefore, to allow the growth of the Brazilian market, mainly in the face of investors from other nations. But if we think about consumers, the government has taken great care to protect them in every way. Operators will first have to monitor players' winnings and losses within a certain amount, and will also be supported by local payment methods for better financial control of income and expenses. Through these analyzes we can safely say that the IGaming sector in Brazil is destined for constant growth in the coming years, mainly thanks to technological progress and new legislation.