Brazil Senate seals the deal

Shirley Pulis Xerxen January 5, 2024

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Brazil Senate seals the deal

Just before the new year, President Luiz Inácio Lula da Silva approved the law that regulates sports betting and online casinos, converting Bill PL 362672023 into Law 14.790. This effectively deals a final blow to the legislative uncertainty that has surrounded the Brazilian gaming industry in recent months.

Gaming to the rescue

Finance Minister Fernando Haddad, who has committed to the goal of zero deficit in 2024 hopes that the income generated from the regulation of the industry will go a long way in boosting its goal of eliminating the public deficit.

To Estad?o, the special advisor to the Executive Secretariat of Finance, José Francisco Manssur, estimates a potential collection of R$ 12 billion (US$2.45 billion) annually in a fully regulated market, which, according to him, should be achieved within five years. Manssur predicts that the revenue for 2024 could exceed R$ 3 billion, including the grant payment by companies interested in operating in Brazil. Each company will have to pay R$ 30 million (US$6.2) for a five-year licence to operate in Brazil.

The higher-than-expected demand for licences, according to Manssur, sees 134 companies having already requested prior authorization to operate in the country.

12% operator tax on total GGR

According to the most recent changes to the legislation, more than a third (36% to be more precise) of the 12% operator tax on total GGR will be allocated to the Ministry of Sports. The other main beneficiaries are tourism (28%), justice and public security (13.6%) and education (10%).

The foresight of SiGMA with the Americas Summit

This significant legislative achievement aligns with the upcoming SiGMA Americas Summit in Sao Paulo in April 2024. Recognized for its impact on the gaming industry, following its success in 2023, the summit has experienced a surge in demand for booths and sponsorships from industry leaders and stakeholders. With the Senate’s final decision on the gaming regulation bill, the SiGMA Americas Summit is positioned to serve as a crucial platform for networking, collaboration, and discussions among industry players navigating the evolving regulatory landscape in Brazil. The legislative outcome has elevated the summit’s relevance, making it an essential forum for understanding and adapting to potential shifts in one of LATAM’s largest markets.

Join SiGMA Eurasia in Dubai between the 25 and 27 February 2024

Happening two months before the Americas Summit, the fourth edition of SiGMA Eurasia will once again be held at the InterContinental Dubai Festival City, providing invaluable opportunities for attendees to network with industry professionals, gain exposure to the latest tech and innovations in the sector, meet key decision makers, and gain insight into new markets. Find all the details here.