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, especially financial, which will aim to make the sector one of the pillars of the state's economy, thanks to the taxes that will be levied on providers and everyone's income. the types of online casinos, including those that offer slots with sign-up bonuses. The population watched with great enthusiasm the entry into force of the 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, in addition to R$4 billion every 5 years for license 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 system on players' income Furthermore, taking into account the tax on players' income, it is expected that they can double their annual income and reach a forecast of 4 million per year. In fact, with the new rules on gambling, it has been decided that winnings will be taxed at 15%, while operators face a 12% tax rate.
The license scenario that the government foresees Regarding the purchase of licenses, the government decided that whoever wants to obtain them will have to pay R$30 million, which corresponds to approximately 6 million dollars. 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 wishing to obtain a license in Brazil must have a partner of Brazilian nationality who owns at least 20% of the company. Added to this is the creation of an office exclusively delegated to control licenses, which will have the task of carefully checking all documents to avoid possible tax fraud. Taxation is the focus of the new regulations, which will allow the State to distribute tax revenues across 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, guidelines for advertising were also issued, with provisions covering several points, including the mandatory inclusion of risk warnings, the prohibition of misleading advertising and the express prohibition of the use of language aimed at minors.
Revenues expected by the Brazilian government in the gaming market in Brazil In the next three years, revenues from the Brazilian Igaming market are 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 consider investing in foreign gambling markets, and Brazil appears to be one of the best at the moment with its legislation. 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. However, if we think about consumers, the government has taken great care to protect them from all points of view. Operators will first have to monitor players' profits and losses within a certain amount, and will also be supported by local payment methods for greater financial control of income and expenses. Through these analyses, we can safely say that the IGaming sector in Brazil is destined for constant growth in the coming years, mainly thanks to technological advances and new legislation.