APPROVAL OF SPORTS BETTING AND ONLINE CASINOS AND THE POSITIVE IMPACTS ON TOURISM, SPORTS AND THE ECONOMY OF BRAZIL

We are celebrating a historic moment this Friday, December 22, 2023. Bill 3626/23 on sports betting, casinos, and online gaming in Brazil was approved. The law now awaits presidential approval to enter into force.

The proposal establishes a 15% Personal Income Tax (IRPF) levy on the net value of winnings. The levy will be levied on the total amount of bets per year, on the amount exceeding the first bracket of the IRPF table (R$2,112).

Online Sports Betting and Online Casino companies will have to be authorized by the Ministry of Finance, with headquarters and administration in the national territory, prove experience in games and other technical requirements, and must have a Brazilian in their list of partners holding at least 20% of the share capital.

Interested companies must pay up to R$30 million for the right to exploit up to three trademarks for up to five years, with a tax rate of 12% of the proceeds. Individuals will pay 15% of the net value of premiums obtained on amounts exceeding R$2,112.

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

Bruno Omori, president of IDT-CEMA, estimates that the revenue from this online Sports Betting and Casinos market will initially be R$1.8 billion, generating more than 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 taxes collected, we will be able to increase competitiveness and tourism promotion, as well as strengthen sports nationally and internationally. Resources will be allocated as follows: 36% for sports, with 7.30% going to entities of the National Sports System; 22.20% to the Ministry of Sports; 0.70% to sports departments or equivalent agencies of the states and the Federal District; and the remainder to sports confederations; and 28% for tourism, with 22.40% going to the Ministry of Tourism. We will have the opportunity to foster the growth of promotional, qualification, structuring, and outreach initiatives to transform Brazil into a major tourism and sports powerhouse.

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

We will hold 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 in the sports betting, online casinos, casinos, bingos, in synergy with the hotel, gastronomy, gym and government markets.