July 2023 is a month to remember for the gaming industry not only in Brazil but worldwide. The South American country has finally passed a law regulating the game market and opening up to foreign operators.
Lula makes history: OK to game law in Brazil
It took several years for President Luiz Inácio Lula da Silva to come back to power, but in the end Brazil did: betting and gaming regulation is a fact. Actually, since 2018, there was already a law, namely 13756, but still waiting for a regulation. Lula signed the interim measure implementing the law in question.
As a result, an ad hoc authority is created that will have the functions of a regulatory body. to be called Secretaria Nacional de Juegos y Apuestas, will briefly cover all issues related to the SNJA and licensing, requirements and awarding procedures. Profit tax is also set at 18% against an initial estimate of 16%.
This latest increase is not the only one that has been decided to align with the contribution to the Ministry of Sports (from 1 percent to 3 percent). Actually, cost of individual licenses, pegged at 30 million Reals, which corresponds to about 6 million dollars. Also, inspired by the Anglo-Saxon model, the law provides a form of self-regulation by operators for responsible gaming.
Possible fallout in the global market
For Brazil, this historic law followed a very similar timing to what we saw in Italy for the reorganization of the gaming industry. Just as the Meloni government included this reform in its programme. Tax Representation LawLula also passed the game law outside of parliament. major tax reform prepared by the executive.
They’re pretty normal dynamics, because gaming industry brings a lot of revenue that almost no country can and cannot give up. In this context, in addition to license fees and taxes on earnings, taxes on earnings were also decided. These will hit 30% of the amount to be collected from winning bets.
Then we remember that this is now. only online betting market is regulated, with a possible opening to online poker but a clearly closed door to casino games, slots, roulette, blackjack and the like. However, foreign operators are showing great interest in the Brazilian market, which is potentially among the largest due to the continuing international embargo against Russia.