Brazilian Senator says that bill to legalize games and casinos is ready for voting

The decision to put the bill to legalize casinos, bingo halls and Jogo do Bicho in Brazil is now in the hands of Davi Alcolumbre, President of the House. The statement was made by Senator Irajá, the bill’s rapporteur, who also said that it has a mature text and already has the necessary votes for approval.

“It is ready to be discussed and voted on in the plenary, as soon as our president Davi understands that the environment is suitable for voting,” he said in an interview to Poder360. “I am open to dialogue, including with the evangelical bench, which has taken a very firm position against the approval of this matter. I believe in common sense,” he added.

According to Senator Irajá, the legalization of these gambling activities will bring R$ 22 billion in taxes to Brazil’s government and might double the number of tourists in the country, from 6 million to 12 million per year.

Responsible gambling

When asked about issues related to gambling addiction and sports betting addiction, Senator Irajá said that “of the 38 OECD (Organization for Economic Cooperation and Development) countries, only Iceland has not yet approved responsible gambling. If you take into account the G20, which are the 20 largest economies in the world, only Brazil and Indonesia have not legalized it”.

“If you look at South America, out of 13 countries, only Brazil and Bolivia did not have the courage to confront this issue yet. I am particularly convinced that we have enough votes to approve this matter. Brazil, which ranks 50th in international tourism, cannot sit back and allow itself the luxury of not taking advantage of this great opportunity to generate jobs, income and taxes,” he concluded.

Bets could reach R$ 30 billion per month

Earlier this month, Gabriel Galípolo, president of the Banco Central of Brazil, said that bets on betting platforms could reach up to R$ 30 billion per month in the country by 2025.

Banco Central presented the data of a study in 2024 that estimated Brazilians spent R$ 20 billion per month, but at the time the research was done the betting platforms were still not regulated in the country. With new regulations in place, it will be possible to assess this number more accurately in future studies. 

“Now with more concrete data, we confirm the figure of R$ 20 billion, and more recently, it may reach R$ 30 billion per month. So far this year, from January to March, the amount we’ve been tracking is around R$ 20 billion to R$ 30 billion per month”, said Rogério Lucca,  executive secretary of Banco Central.

The good news for the bettors is that, as Lucca emphasized, a significant portion of that amount, estimated at over 90%, is returned to them as payouts for their wagers.

Changes in Brazilian regulation

In December 2023, Brazil approved Law 14.790/23. Among the main changes imposed by it, private companies will now be able to operate sports betting both online and in physical establishments.

See, below, how this Law will affect sports betting in the country:

• Private companies will be able to operate both online and in physical establishments: until December 2023, sports betting in Brazil was only allowed in lottery shops and was controlled by the federal government. As of January of this year, however, any private company will be able to operate sports betting, whether digitally or in a physical space.
• The minimum age for placing sports bets has increased from 18 to 21 years old.
• Advertisements or any type of publicity targeted at minors have been prohibited.
• Betters must have their identity verified and validated;
• Bookmakers must implement policies to prevent money laundering schemes and promote responsible gambling.

How will sports betting regulation work in Brazil?

It is important to note that, in 2023, Provisional Measure (MP) No. 1.182/2023 was also approved, amending Law 13.756/18. Among other changes, this law allows for more control of the sports betting sector. For example:

• Monitoring: betting houses will have to purchase a license to operate in Brazil. The tendency is for a new department to be created in the Ministry of Finance to accredit companies, after a process of document analysis. If approved, the government will monitor the volume of bets and the institutions’ revenue, which will ensure more control over this market.
• Legality: companies approved in the process mentioned above and with valid licenses will be able to receive bets related to sporting events. These events, however, must be official and organized by federations, leagues or confederations. Betting houses that commit infractions may be fined between 0.1% and 20% of the proceeds of the revenue, depending on the severity of the violation.
• Taxes: players with winnings exceeding R$2,112 will have to pay 30% of the value of their total winnings in taxes, which is the same rate applied to lottery prizes. Betting houses, in turn, must be required to pay an 18% tax on Gross Gaming Revenue (GGR), which is the revenue obtained from all games played, minus prizes paid to players and taxes levied on legal entities. Companies in the sector, like any other, will also need to pay PIS, Cofins, Income Tax, CSLL and ISS.
• Money laundering: betting houses must implement strict control and effective monitoring systems to prevent money laundering. They must submit information about bettors to the Financial Activities Control Council (Coaf).

Bookmakers also need to promote awareness-raising actions regarding pathological gambling disorder, to prevent addiction and ensure the mental health of bettors.

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