Brazil Moves Closer To Legalized Online Gambling

Published Sunday, March 13, 2016 - Online-Casinos.com
Brazil Moves Closer To Legalized Online Gambling

Brazil is poised to become the next legal jurisdiction for the online gambling industry. Latin America has a great deal of potential in the online betting market and Brazil represents a massive part of it. A bill that calls for sweeping changes to Brazil’s gambling industry, including the introduction of casinos, video lottery terminals and other offerings such as online sports betting, bingo and casino games was recently introduced in Brazil’s House of Representatives.

The proposed comprehensive gambling legislation was amended and approved by the Special Committee on National Development that senators had proposed for the bill SB 186/2014. Senators proposed 16 amendments, with five being added to the original text, including prohibiting public officials and relatives from any involvement in the gambling industry plus ensuring the suitability of possible gambling operators.

The amended legislation clearly defines tax rates for the various gambling options. Online gambling will be subject to a rate of 20% gross revenue. This is double the sum applied to terrestrial gambling operators. The bill maintains the higher rate for online betting operations by  indicating that terrestrial operations incur greater start-up and maintenance costs, with online gambling operators having a more “significant” profit margin “and therefore higher ability to pay.”

The government has not released details on the number of online licenses the government of Brazil intends to issue.  There is not any information about whether there will be any requirement for international operators to partner with an established Bran enterprise although it is known that firms will have to establish a local office. As in many other global jurisdictions, Brazil’s central bank will be made to block payments related to unauthorized online gambling operators.

Brazil stands to gain revenue from new legislation to help with the mounting debt the government has. Estimates have been suggested that the annual tax revenue of R 15b ($4.15b) following the bill’s passage could be gained.  It has been estimated by the Brazilian Institute of Gaming that as many as 200 thousand Brazilians travel to bordering nations to bet.

 

 

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