Between January and July 2023, impressive amounts were transferred by Brazilians to international betting platforms, reaching the US$6.9 billion mark. This represents around R$33.5 billion, according to a Central Bank survey analyzed by the Aposta Legal Brasil portal.
This volume is 13 times greater than that recorded in the same period of the previous year, where bets totaled US$489 million.
Of the total handled in 2023, US$1.5 billion corresponded to payments made to foreign operators, while Brazil recorded an inflow of US$5 billion, an amount that includes the prizes paid to winning bettors.
Growth and regulation of the betting market
The significant advancement of the betting market in Brazil comes amid debates about its regulation. Since the sanction of Law 13,756/2018 in December 2018 by former president Michel Temer, sports betting has been allowed in the country.
The legal opening of the sports betting market brought a new era of opportunities for the sector in Brazil.
In conversation with Aposta Legal Brasil, Milton Jordão, lawyer and vice-president of the OAB Nacional’s Special Commission on Gaming Law, highlighted profitability as one of the main reasons for the high volume of transactions in betting operators.
“We realized that gambling can be entertainment and, for some, a source of income. The view on gambling has changed and we now see a highly profitable market”, he commented.
However, full regulation of sports betting operators in Brazil is still pending.
On September 13, 2023, the Chamber of Deputies approved a bill regulating fixed-odd sports betting. The text, which now includes MP 1,182/2023, is in the Senate for evaluation.
High tax revenue projection
Law 13,756/18 stipulated that betting operators in Brazil would retain 95% of gross revenue, minus prizes and taxes.
However, the bill approved by the Chamber reduces this margin to 82%. Players will pay 30% tax on prizes above R$2,211, but will be exempt for lower amounts.
Tax revenue will benefit several areas. The bill allocates specific percentages to:
Social Security: 2%;
Education: 1.82%;
Sport: 6.63%;
Tourism: 5%.
Clubs and athletes will also receive remuneration for the use of their names and images, with 1.13% of the 6.63% allocated to sport going to them.
Of the total allocated to sport, 0.5% will go to the state Sports departments, which will distribute half to the municipal departments, proportionally to the local population.
The tourism sector will direct 1% of revenue to Embratur and 4% to the Ministry of Tourism.
