With the recent sanction of Law 14.790/2023 by the Brazilian government, the online sports betting sector has entered a new phase of regulation and legalization.
The changes bring clear guidelines on taxation and the criteria necessary for bookmakers to operate regularly in the country. If you are part of this segment or want to find out more about the new rules, read on to find out all the details about the regulations and how your company can comply.
What does the new law say?
Law 14.790/2023, sanctioned by President Lula in December 2023, marks a significant step forward in the regulation of online sports betting in Brazil. As of this law, betting companies and bettors themselves are obliged to collect the taxes due in the country, with the aim of increasing revenue and allocating these funds to essential areas such as health, education and public safety(
- Distribution of ResourcesThe new legislation defines that 88% of the gross turnover of betting companies can be used to fund the activity, while 12% of the taxes collected will be used for the Social Security Contribution, education, tourism, health, public security and sports.
- Rates and VetoesThe law also establishes that the 15% tax rate will be levied on all sports bets, regardless of their value. This ensures that the government can collect more effectively, avoiding loopholes that could reduce the taxable amount.
Deadlines and criteria for regularization
O Ministry of Finance has published an ordinance stating that all bookmakers wishing to operate in Brazil will have until the end of 2024 to become regularized. From January 1st, 2025Any company that fails to comply with the rules will be subject to penalties, including the suspension of your site.
Criteria for authorization
In order to receive authorization to operate, bookmakers must meet requirements related to five categories:
- Legal QualificationProof of the company's good standing and reputation.
- Tax and Labor Compliance: Be up to date with all tax and labor obligations.
- Economic and Financial QualificationThe company must prove a net worth of at least R$ 30 million.
- Technical QualificationDemonstrate expertise and capacity to operate in compliance with sector regulations.
- Governance PoliciesThe adoption of anti-money laundering, responsible gaming and betting integrity policies is mandatory.
The payment of R$ 30 million to the Union is also required for the company to be able to exploit up to 3 trademarks in the national territory, for a period of 5 years
Read more about: São Paulo regulates ISS for sports betting
How can CLM Controller help your company comply?
A CLM Controller has a team of specialists ready to help companies in the sports betting sector adapt to the new regulations. With expertise in legal clearance, tax and labor compliance, economic-financial and technical qualification, our team can offer all the support your company needs to meet all the criteria required by the Brazilian government.
Don't take risks! Make sure your company is compliant and operating legally in Brazil. Contact CLM Controller and ensure that your business is legal today.
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