In December 2023, the Brazilian Senate approved gambling regulations that apply to both betting and online casinos. This event introduced the legalization of gambling throughout Brazil, triggering a series of reforms, especially financial, that aim to make the sector one of the pillars of the state's economy, thanks to the taxes charged to the supplier and the income from all types of online casinos, including those that offer slots with sign-up bonuses. The population witnessed great enthusiasm with the introduction of new regulations for online casinos, ensuring an even safer and fairer gaming market.Economic potential of the new training scenario The economic and social potential of the new policy could contribute significantly to tax revenues and employment opportunities. Official estimates speak of around R$10 billion per year, in addition to R$4 billion every 5 years for licensing costs. This could mean that legalizing gambling brings around $2 million a year into state coffers through operators alone.
Player income tax system Furthermore, taking into account the taxation of players' income, they are expected to double their annual income, reaching a forecast of 4 million per year. In fact, in the new rules of the game it was decided that winnings will be taxed at 15%, while operators will be taxed at 12%.
The licensing scenario envisaged by the government In relation to the purchase of licenses, the government decided that whoever wants to acquire them will have to pay R$30 million, which is equivalent to around 6 million dollars. The license is valid for 5 years and, in addition, operators must guarantee an initial capital of at least R$100,000. Foreign operators wishing to obtain licenses in Brazil must have a Brazilian partner who holds at least 20% of the company. Added to this is the creation of an exclusive license control office, with the task of carefully monitoring all documents to avoid possible tax fraud. Taxation is the main focus of the new policy, which will allow the State to allocate revenue across different sectors, including education, public health, tourism, sport and social security. Any unclaimed prize money is also expected to go directly to the student fund.
This 360-degree approach provides a structured operation that becomes more detailed over time. In addition, advertising regulations have also been issued, with provisions covering several points, including the mandatory inclusion of risk warnings, the prohibition of misleading advertising and the explicit prohibition of the use of minor language.
Revenue expected by the Brazilian government from the Brazilian gaming market In the next three years, revenue from the Brazilian gaming market is expected to exceed R$100 billion, or approximately US$200 million. It is thought that the majority of this revenue could come from tourism, as more and more companies are considering investing in foreign gambling markets, and Brazil now, thanks to its laws, appears to be one of the best. Working in a regulated market provides greater security and trust with different companies in the sector and greater credibility for the bettor.
Law to facilitate the development of the sector This new law aims, therefore, to allow the growth of the Brazilian market, especially in the face of foreign investors. Considering consumers, however, the government protected them from all points of view. Operators first need to monitor players' wins and losses within a certain amount, and also support them with local payment methods for greater financial control over income and expenses. Through these analyzes we can safely say that the Brazilian IGaming sector is prepared for continued growth in the coming years, thanks to technological advances and new legislation.