Approval of online sports betting and casinos and the positive impacts on tourism, sports, and the Brazilian economy.

We celebrate a historic moment: this Friday, December 22, 2023, Bill 3626/23, concerning sports betting and online casinos and games, was approved in Brazil. The law now goes to the President for approval to definitively come into effect.

The proposal establishes a 15% Personal Income Tax (IRPF) levy on the net value of prizes won. The tax will be applied to the total number of bets per year, on the amount exceeding the first income tax bracket (R$ 2,112).

Online sports betting and casino companies will need to be authorized by the Ministry of Finance, be headquartered and managed within the national territory, demonstrate experience in gaming and other technical requirements, and must have a Brazilian citizen as a partner holding at least 20% of the share capital.

Interested companies will have to pay up to R$ 30 million for the right to exploit up to 3 trademarks for up to five years; the tax rate will be 12% of the profit. Individuals will pay 15% on the net value of prizes obtained on amounts exceeding R$ 2,112.

IDT-CEMA has found that of the more than 550 sports betting companies operating in Brazil, over 140 are already in the process of adapting, with the capital and infrastructure prepared to comply with the legislation that will come into effect.

Bruno Omori, president of IDT-CEMA, estimates that the revenue of this online sports betting and casino market will initially be R$1.8 billion, generating over R$700 million in taxes in 2024. We project a potential to reach almost R$100 billion in revenue in Brazil in the next 3 years, generating approximately R$12 billion in taxes.

From these collected taxes, we will be able to increase competitiveness and tourism promotion, and strengthen sports, both nationally and internationally, as resources will be allocated as follows: 36% to the sports sector, with 7.30% going to entities within the National Sports System, 22.20% to the Ministry of Sports, 0.70% to the sports secretariats, or equivalent bodies, of the States and the Federal District, and the remainder to sports confederations; and 28% to the tourism sector, with 22.40% going to the Ministry of Tourism. We will have the opportunity to promote the growth of promotional, qualification, structuring, and dissemination actions to transform Brazil into a major tourism and sports power.

We defend this thesis after the approval of Bill 3626/23 by the National Congress at the beginning of next year, the final processing stage, and the consequent approval of Bill 442/91 on Integrated Casino Resorts, Tourist Casinos and Bingo Halls, which will promote the entry of USD 70 billion in investments, impacting 10 million jobs.

We will be holding the 3rd edition of BOGEC (Brazilian Opportunities, Gaming, E-sports & Casinos) on April 24th and 25th, 2024, during the EXPOTEL Fair at the Frei Caneca Convention Center, where we will have leaders from the sports betting, online casinos, casinos, and bingo markets, in synergy with the hospitality, gastronomy, academia, and government markets.