Zona de Azar Brasil – Brazil: For IBJR, Overturning Vetoes Ensures A Viable Betting Market

Brazil.- May 14, 2024 www.zonadeazar.com The beginning of this week marks a significant step forward in ensuring a betting environment in Brazil that is sustainable, protected and equitable for all involved, including operators, the government and the population.

Law 14,790/23, sanctioned in December, had two of its presidential vetoes recently rejected by Congress, an event celebrated by the Brazilian Institute of Responsible Gaming (IBJR).

Brazilian legislation underwent a significant change with the revocation of vetoes that directly impacted the effectiveness and direction of the local market. The central issue was the taxation of betting prizes via Income Tax. With the annulment of the vetoes, the legislation returns to its original format, marking a notable moment in the country’s legislative history.

Legislators adopted the guidelines of the Brazilian Institute of Justice and Regulation (IBJR), which were based on international studies to establish annual taxation and Income Tax exemption for prizes below R$ 2,259.20, the limit of the lowest range of progressive table.

The IBJR celebrates this decision as a step towards more equitable taxation for bettors in Brazil, encouraging participation in the regulated market and increasing access to a diverse range of entertainment options. With this, everyone wins: the country, the bookmakers and the bettors.

This transformation began with the approval, by Congress, of a law in December of the previous year that regulates and imposes taxes on online betting, an essential measure for the Ministry of Finance to achieve fiscal goals through new revenue.

Online betting companies interested in operating in Brazil now need to invest R$30 million to acquire a license, as long as they comply with current legislation and have headquarters and administration within the national territory.

The government, following the new distribution scheme, will allocate tax revenue as follows:

36% to the Ministry of Sports;
28% for Tourism;
13.6% for Public Security;
10% to the Ministry of Education;
10% for Social Security;
1% for Health;
0.5% for civil society organizations;
0.5% to the Fund for the Equipment and Operationalization of Core Activities of the Federal Police (Funapol);
0.4% to the Brazilian Industrial Development Agency.

Edit @_fonta   www.zonadeazar.com