Brazil’s Chamber of Deputies gives final approval for the regulation of gambling

Brazil’s Chamber of Deputies has granted final approval for the regulation of gambling, marking a significant milestone in the country’s legislative journey. The approval comes after the passage of Bill 3,626/2023, which not only regulates sports betting but also reintroduces iGaming, reversing its earlier exclusion by the Senate.

The chamber’s decision signals the green light for the regulation of online gambling, paving the way for its official implementation in 2024. With the approval secured from the Chamber of Deputies, the bill now progresses to the office of President Luiz Inacio Lula da Silva for the ultimate seal of approval.

This move represents the concluding legislative step for Brazil’s online betting bill, awaiting the official endorsement by President Luiz Inácio Lula da Silva (pictured). The bill underwent amendments and Senate approval before being returned to the Chamber of Deputies earlier this month. Notably, the Senate had initially removed all provisions related to a regulated iGaming market, retaining only online sports betting.

However, the latest approval by Federal Deputies on December 22 reinstated iGaming in the legislation, enabling companies to pursue licenses for operating online casinos in the country.

The approval followed a spirited debate in the Chamber of Deputies’ plenary session. Members of Brazil’s evangelical political bloc sought to reject the proposals, expressing concerns about the potential negative impacts of regulated gambling. In contrast, proponents of the bill argued that regulating the industry was a more realistic approach, legitimizing it and ensuring safety for all participants.

Chamber President Arthur Lira emphasized that the bill had previously gained approval from Federal Deputies in September. The bill’s rapporteur, Adolfo Viana, stressed the importance of including iGaming, stating that its exclusion would jeopardize the entire project. He argued that without regulated options, consumers might resort to unlicensed operators offering online casino games.

The bill now awaits the final endorsement from Brazil’s president, solidifying its status as the country’s official gambling law. The regulatory framework stipulates that licensed operators will face a 12% tax on Gross Gaming Revenue (GGR), with a 15% tax applied to customer winnings exceeding R$2,112. Operators must receive authorization from the Ministry of Finance, maintain a physical presence and representative in Brazil, and adhere to stringent requirements in anti-money laundering, responsible gambling, and advertising rules. License fees, capped at R$30 million (€5.6 million), will grant operators the right to run up to three commercial brands for a maximum of five years.