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Brazil gets the Green Light to Legalize Online Gambling and Sports Betting

GOSU NEWS

In a significant move, the Brazilian government has officially endorsed the regulation of online sports betting and iGaming through the approval of the so-called ‘betting project.’ This development, occurring just before the close of the year, sets the stage for the establishment of a regulated online gambling market expected to materialize in 2024. The bill has now advanced to the stage of being formally sanctioned by the President.

Legislation

Originally granted approval in September 2023, the bill faced additional scrutiny and a second round of voting in the Chamber of Deputies this week due to criticisms from the Senate. A noteworthy point of contention arose as the Senate voted to exclude iGaming from the bill, prompting the Chamber to counter this decision and reaffirm its inclusion.

Compromises and Key Provisions

Months of negotiations and compromises have culminated in a comprehensive bill that not only legalizes online betting but also introduces regulations encompassing taxation for both companies and bettors. Furthermore, the legislation outlines specific rules for licensed operators, looking to strike a balance between industry growth and responsible gaming.

Financial Allocations and Revenue Distribution

Under the approved framework, companies engaged in online betting will retain 88% of their gross revenues, while the remaining 12% will be allocated to various sectors, including education, public safety, sports, and other relevant areas.

Controversial Perspectives

The decision to regulate online gambling has sparked controversy, with Deputy Eli Borges expressing concerns about the potential negative impact on the younger demographic. Borges argues, “We are taking another step forward to involve young people and Brazilian citizens in an unprecedented game.”

Advocates for Regulation

Contrary to the opposition, Arthur Lira, the President of the Chamber, emphasizes the necessity of regulation. Lira contends that unregulated online gambling sites already exist and must be managed effectively, stating, ” If individuals refrain from voting on regulations, will gaming cease to exist? Do players cease to participate, and do betting activities and sponsorship for teams, events, and tournaments come to a halt? No!”

Supporters of the bill, such as Deputy Adolfo Viana, echo this sentiment, highlighting the need for a definitive law that subjects betting sites to inspection and taxation by the country. Viana emphasizes, “If we don’t approve the project, the games will continue to take place without supervision.”

Path Forward

With the bill now awaiting the President’s formal sanction, Brazil is poised to navigate the uncharted waters of a regulated online gambling landscape. As the country prepares for the implementation of these groundbreaking regulations, the coming years will likely witness the evolution of the Brazilian online betting industry.

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