The Chamber of Deputies is expected to vote this week on whether online casinos will be included in the project to regulate betting, also known as sports betting.
The agenda is one of the priorities of the Federal Government, which hopes to increase tax collection in order to reach the fiscal target next year. The regulation has the capacity to raise around R$2 billion in 2024.
The bill was approved in the Chamber in September. However, the text was modified in the Senate, with the reduction of the rate and the exclusion of online casinos.
Online casinos
The market’s expectation is that deputies will reinstate online games in the sector’s regulation proposal.
However, online casinos were not part of the project originally submitted by the government and were included during the Chamber’s processing.
The section was blocked by senators. Furthermore, parliamentarians pointed out that the project does not clarify how inspection of these modalities should be carried out.
In the case of the tax rate, the senators reduced the rate that will be charged to betting operating companies from 18% to 12%.
While the income tax (IR) rate to be paid by winning bettors fell from 30% to 15%, according to the Senate text. This amount will be paid when the value of the prize received is above R$2,112.00.
Furthermore, the senators also reduced the IR rate to be paid on prizes obtained in fantasy sports, which went from 27.5% to 15%.
Excerpts from the betting regulations maintained by senators
Other parts of the bill were preserved, as well as the value of granting authorization for betting houses to operate in Brazil, which will be up to R$30 million paid to the Ministry of Finance. The license will be valid for up to five years.
Therefore, the tax collection will be passed on to tourism, public security, sport, education and health.
The betting regulation proposal also determines that communication, advertising and marketing actions must comply with the rules of the Ministry of Finance.
Among the requirements, games must encourage responsible gambling, participation only by people of legal age and warnings about the risks of excessive gambling.
