The New Era of Sports Betting in Brazil: Regulation and Transformations in the Sector
Exploring the Risks Behind the New Regulation of Sports Betting in Brazil
The Lottery House
tags:
politics
sports betting

Revolution in the Scene
Brazil is witnessing a revolution in the sports betting scene, marking the beginning of an innovative and regulated era. The eagerly anticipated regulation not only legalizes and controls online betting operations but also redefines the economic landscape of the sector within the national territory. In this article, we will explore the key aspects of this regulation, from tax implications to security measures, highlighting how this transformation will impact the world of sports betting in the country.
Legality of Online Sports Betting in Brazil

In 2018, online sports betting was officially legalized in Brazil by Law 13,756. This legislation opened the doors for Brazilians to place bets on internationally based platforms. However, it was with the recent sanction of Law 14,790 that sports betting was fully regulated, establishing clear guidelines and promoting significant changes, such as the introduction of a 15% taxation on the winnings of bettors.
With the final approval of the proposal, sports betting is now allowed in Brazil, provided that betting companies comply with a set of legal and financial requirements to operate legitimately. Bill 3626/23, approved by the Chamber of Deputies and sanctioned by the Federal Government at the end of 2023, regulated online fixed-odds sports betting, commonly known as "bets." This implies that companies wishing to operate in Brazil must obtain authorization from the Ministry of Finance, follow specific requirements, such as having 20% of the capital in the hands of a Brazilian company, and pay a substantial initial license fee, which can amount to up to R$ 30,000,000. Additionally, the legislation imposes strict restrictions, prohibiting individuals under 18 years old and those with influence in sports events from participating in betting.
Details of Sports Betting Legislation in Brazil

Law 14,790, responsible for regulating online sports betting in Brazil, establishes a 15% tax on the winnings of bettors, replacing the previous proposal of exemption up to R$ 2,112. Companies authorized by the Ministry of Finance will be responsible for the operation, subject to specific requirements and considerable licensing fees, which can reach up to R$ 30 million.
The Federal Revenue will play a crucial role in deciding the assessment period of the bettor's winnings to apply the tax charge. This includes the possibility of defining the frequency of collection through ordinances. These measures are part of the government's efforts to regulate the practice, aiming not only for tax revenue but also for proper control and supervision of this sector.
The revenue distribution will follow the following proportion:
88% allocated to operational expenses and maintenance of betting houses;
2% will contribute to Social Security;
The remaining 10% will be allocated to areas such as education, health, tourism, public safety, and sports.
From the date of the announcement of the betting result, all prizes must be declared within 90 days. Otherwise, they will be transferred to the Student Financing Fund (FIES) until April 2028, and then collected by the National Treasury
Impacts of Regulation on Players and Operators

Despite the regulation, it is crucial for bettors to consider the inherent uncertainty in sports betting.
Safer Environment, But Not Without Risks:
Regulation promises a safer environment for players, but that does not mean the risks have disappeared. In reality, bettors must be vigilant about the challenges inherent in the unpredictable nature of sports betting.
Rigorous Oversight, but Not Free of Pitfalls:
The rigorous oversight of betting houses is a promise of regulation, but it is important to recognize that, even with the best intentions, some predatory practices may escape the authorities' eyes. Bettors should be aware that the risk of manipulation still exists.
Economic Stimulus with Reservations:
While there is an expectation of economic stimulus in the sector, high concession values and exorbitant licensing fees may discourage operators from establishing themselves in Brazil. This, in turn, limits competition and may result in limited options for bettors.
Possibility of Restricted Markets, Leading to Limited Choices:
If certain markets are prohibited, operators may choose not to operate in the country. This not only restricts the variety of options available to Brazilian bettors but also encourages them to seek alternatives on foreign sites, increasing the risks associated with unregulated operations.
Conclusion:

While the regulation of sports betting in Brazil seeks to bring order to the sector, it is imperative to recognize the inherent risks in this activity. The promised safer environment comes with challenges, from significant taxation to restrictions imposed on bettors. It is up to players to weigh the pros and cons, maintain a critical eye on the industry, and make informed choices when venturing into the risky territory of regulated sports betting.