Over the last few years, sports betting and online gaming have gained significant importance in the Brazilian and global landscape. With the advancement of technology and the popularisation of these forms of entertainment, there are opportunities for regulation and sustainable growth in this market.
Law 14,790/23 represents a significant milestone in the sports betting and non-sports online gambling scenario in Brazil. Before its implementation, the market operated in a low regulatory environment. As a result, there were challenges in terms of transparency, player security, and tax collection. However, with the new law, betting and online gaming operators are now subject to clear obligations, creating a much safer legal landscape.
In this context, one of the most significant changes in the new law is the requirement for a licence from the Ministry of Finance for operation in the sector. This provides greater security for players, as it stipulates that only legally established companies can offer betting services in the country. In addition, the law introduced taxation for both operators and bettors. Consequently, companies in the sector are now required to pay 12% of Gross Gaming Revenue (GGR). Meanwhile, players are subject to a 15% tax on net winnings, which must be declared on their income tax returns. These measures are designed to increase tax revenues while ensuring the sustainability of the betting and online gaming market.
Nevertheless, the changes are not limited to the fiscal and regulatory aspects. The new law has also had an impact on the way operators offer their services, demanding greater clarity in several areas. In addition to game rules, transparency must be maintained in the disclosure of results and the handling of player data. This contributes to a safer experience for users and builds trust in the market as a whole.
Players, operators, and the market overall will benefit from the regulation proposed by the new law. For example, we can mention the following.
The new legislation establishes clear and rigorous rules for companies, ensuring greater security for players in terms of services and transactions. The new law also aims to prevent the misuse of platforms. In particular, by using facial recognition as a means of verifying the identity of bettors. This will help to prevent fraud and potential harm.
By being licensed and complying with Brazilian regulations, operators are encouraged to act responsibly and protect players.
The taxation levied under the new law will provide a source of revenue for the Brazilian government. This amount of money can be used in important areas such as education, health care, tourism, and many others.
The operators will be able to allocate 88% of the Gross Gaming Revenue (GGR) to cover operation-related costs.
The betting and online gaming market grows sustainably in a regulated and more reliable environment. As such, it is expected to attract investment and generate direct and indirect employment. Given these changes, the betting and online gaming market in Brazil is currently undergoing a period of adaptation and development. With our e-book "Inside the Rules of the Game", you have the opportunity to keep up to date on this subject.
The Brazilian betting and online gaming market is undergoing a period of adaptation and evolution due to these changes. Take the opportunity to stay informed with our e-book "Inside the Rules of the Game".
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Photo: iStock/Ferreira Silva
