Brazil Gives Green Light to Sports Betting

Brazil’s President, Lula da Silva, signed amendments to enact the gambling law from 2018.

The sports gambling law had been in limbo since 2018, as betting companies operated under the radar in the country without paying taxes.

In 2022, Brazil held presidential elections, with Lula da Silva clinching the victory. Legalizing gambling was a key promise in his campaign. The lack of clear rules for the betting sector had cost the country millions in tax revenues.

Brazil’s gambling market is one of the fastest-growing in Latin America. According to the report by the research platform Delasport, the estimated volume of Brazil’s online gambling market in 2022 reached $2.1 billion.

Now, the amendments signed by the President need to get the green light from the Brazilian Congress, which has four months to decide.

The country’s Ministry of Finance will create a regulator for the gambling sector called the National Secretariat for Games and Betting (SNJA), responsible for licensing and reporting.

The cost of a bookmaker’s license will be $6.35 million, and the tax on gross gaming revenue (GGR) will be 18%.

According to Brazil’s Minister of Finance, Fernando Haddad, the government could rake in over $423 million in tax revenues in the first year after legalization.