The lower house of Parliament of Brazil, on Wednesday, September 13, passed a historic bill relating to sports betting online gambling in the country. The bill will now allow the Brazilian Govt to tax betting and gambling activities at 18 per cent. It is however to be noted that the earnings out of these activities will only be taxed on the net revenue generated by a user.
The bill will now head to the Senate to outlay further formal provisions. Now, the companies that are to operate in Brazil will have to obtain a grant. The grant will be valid for a total of thirty-six months. Furthermore, the fees to obtain a grant is set at 30 million Brazilian Real, which is roughly about US $6 million.
As per Gambling News, the taxes collected on these activities will be proportionately distributed among different divisions of government operations. These include tourism, sports, and education to name a few. The National Public Security Fund and Social Security will also receive funds from the collected amount.
The online gambling sites that go hand-in-hand with the Finance Ministry’s guidelines will also be taxable. This not only expands the scope of tax revenues, but also increase the amount of regulations over Brazil’s ever-expanding industry.
Minors, match officials not allowed to gamble
Another important thing to note is that players under the age of eighteen are prohibited to gamble on sporting events. Additionally, those directly involved in a sporting event, viz, players, coaches, referees, etc. are also prohibited. However, their scope is restricted only to betting on fixed odds.
While many countries like and are regulating the gambling and betting industry, Brazil Govt’s step seem to be in the right direction. In India, the state of Tamil Nadu restricts online gaming of all forms, including game of skill and chance. Australia, on the other hand, have regulated both real and virtual gambling by imposing various restrictions.