Online Casino Market In Brazil Opens Up
Contents of The Bill
The bill would require the Ministry of Finance to keep a close eye on land-based betting and online betting dealing in fixed odds within a competitive environment. If legislators were to pass the measure, then the Ministry would have to license wagering activity within two years.
Another noteworthy aspect of the bill is that online operators would have to fork out a 90% minimum giveaway in winnings and taxes. Also, operators would have to part with a 2% payment to winnings and taxes, and would also have to set an 8% cap on operation expenses.
Similar to the regulations enforced on online sports betting in Brazil, their land-based counterparts are expected to comply with some measures too. As such, the ‘brick and mortar’ betting operators will have to pay out at least 82% of their handle to gamers and cover the tax attached to winnings.
In addition, land-based operators will have to comply with an additional tax of 4% which will go into community and government projects and initiatives like schools, sporting grounds and Brazil’s National Public social security. Moreover, operators’ expenses will be capped at 14% of handle. Bookmakers will have no option but to pay top dollar to be allowed to operate in Brazil.
Speeding Things Up
The betting bill will now be discussed in the Chambers of Deputies and subsequently in the Senate. The bill must be passed by both legislative houses by November 28 for it to become law. Were it not for vigilant legislators who brought the bill back into the daily order, the sports betting legislation wouldn’t have been discussed until 2019.
As the planning of the regulation gets underway, a licensing body will have to be created or the government will seek external assistance to confirm the legality of those who wish to offer sports betting services. This will cut across online and offline operators and Brazil will go on to become part of a select group of Latin America countries where sports betting is fully-regulated and overseen by the government.
With more than 210 million people, Brazil is the biggest country in South America and international brands will be eager to establish their gambling ventures, be it online or offline to tap the huge market. In spite of the taxation that will be imposed, the future looks promising for the sports betting industry in this Latin American country.
Sheldon Adelson, the owner of Las Vegas Sands, has been engaging the Brazilian authorities for many years now in the hope of setting up a huge integrated resort in the country and will welcome the implementation of the law with open arms.