Brazil Online Casinos on the Verge of Legalization

Brazil is on the brink of a significant milestone after the possibility of legalization of online casinos and gambling happened this week. The lower house of the government approved an online gambling bill which contained both online casino and sports betting.

This landmark decision could reshape the country’s entertainment landscape and its financial prospects. 

Brazil’s Path To Legalizing Casinos And Gambling

The road to introducing legal online casinos and gambling in Brazil has been a journey marked by challenges and progress. A blanket ban on land-based gambling in 1946 exemplified the government's attitude toward the industry. With the explosion of the internet and iGaming, it could have been predicted that Brazil would have to make a decision soon on bringing gambling into the regulated market. 

Despite a 2010 attempt to ban online gambling, an outright prohibition has never succeeded. In 2018 the Federal Senate passed Federal Law No 13,756/18, a move aimed at regulating fixed-odds sports betting. This laid the foundation for broader gambling regulations in the country.

However, the journey faced a major obstacle when former President Jair Messias Bolsonaro declined to endorse the new rules, casting uncertainty over the future of gambling in Brazil. The election in 2022 of President Luiz Inácio Lula da Silva, though not initially seen as a strong supporter of the industry, brought renewed optimism.

Fast Track To Gambling In Brazil

Despite a large appetite for it, Brazilian players currently don't have a clear way to gamble online with real money. Many have to play at casinos where no real money is deposited, such as free slot games at various online sites. Some online casinos registered in countries like Curacao, for example Fezbet Casino, are available for Brazilian players as well.

In July, President Lula's government took a decisive step by promulgating the Provisional Measure designed to regulate sports betting nationwide. This significant development was the result of years of planning by the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP). However, for the measure to become permanent, it requires approval from the country's Congress within a 120-day period.

Now, with the recent approval of the government's comprehensive gambling bill by the Chamber of Deputies, Brazil stands on the verge of legalizing online casinos alongside sports betting. This momentous achievement comes after years of political shifts and ongoing efforts.

Key Provisions Of The Brazilian Bill For Casinos And Gambling

The approved Bill 3,626/23 is poised to replace the provisional measure initiated by President Lula. It not only paves the way for online casinos but also embraces sports betting, providing a holistic framework for the gambling industry.

One noteworthy point is that the bill excludes foreign companies from offering regulated gambling, mandating that businesses be incorporated under Brazilian legislation with headquarters and administration within the nation. The implications of this restriction remain a topic of discussion in the industry.

The bill introduces an 18 percent tax on revenue, potentially reaching an effective tax rate of 31-34 percent after considering additional contributions. Various percentages of gaming revenue are earmarked for critical areas like social security, education, sport, and tourism.

Brazil Online Casino Awaiting Senate's Decision

With the bill's approval by the Chamber of Deputies, the final chapter in the journey toward legal online gambling in Brazil unfolds in the Federal Senate. This pivotal legislative body now has 45 days to offer its insights on the bill, after which it will proceed toward becoming law.

As Brazil approaches the brink of legalizing online casinos and expanding its gambling landscape, the industry, government, and citizens are poised for a transformative moment. The decision from the Senate holds the potential for not only economic growth but also the establishment of a regulated and responsible gambling environment.