Efforts for the legalization of sports betting in Brazil continue. Earlier this week, Senator Angelo Coronel was appointed to the role of rapporteur for a bill that proposes the legalization of wagering on sports in the country. The latest announcement comes after the proposal, Bill 3626 / 2023, successfully cleared Brazil’s lower house of Parliament early last month.
If the aforementioned proposal gains further traction and is signed into law, it calls for an 18% taxation on the net revenue of sports betting operators. Establishing legal sports betting is expected to deliver fresh tax revenue for Brazil. While it is early for estimates on what tax revenue the activity would bring, the proposal calls for a license for the operators that want to offer their services within the market. Per the proposed bill, a license fee of BRL30 million ($6 million) would be applicable for three years.
Currently, the proposed Bill 3626 includes the legalization of sports betting activities, as well as online gambling. The tax rate applicable for online gambling would be the same as the one for betting operators. Besides delivering fresh tax revenue, the new proposal is likely to significantly reduce the share of the black market, granting bettors and sports fans alike legal and safe options for wagering.
Legalized Wagering to Attract Major Betting Operators
As the proposal calling for sports betting legalization gains further traction it will now undergo a review by the Economic Affairs Commission, as well as the Sports Commission (Cesp). Previously, the Cesp already proposed amendments to the bill when it first reached the Senate. After the review of the Economic Affairs Commission and Cesp, the sports betting bill will head to the Senate plenary.
While Brazil is still far from legalized sports betting, many operators are already considering this lucrative market. The legalized sector in the country is expected to attract major entertainment and gaming industry giants that would be interested in catering to passionate sports fans. Focusing on the bigger picture, the whole Latin American region is identified for its incredible potential when it comes to legal sports betting and online gambling.