President Luiz Inacio Lula da Silva Legalizes iGaming in Brazil

President Lula Makes Changes to Draft Law

According to various media reports, President Lula signed the draft law on December 30 after making some changes. The Brazilian Senate had initially removed the legalization of iGaming from the draft, but the president re-added it.

President Lula also revised the proposed tax on gambling winnings, eliminating the planned 15% tax with a threshold of 2,112 BRL (394 Euro). Online casinos, however, remain unregulated.

Additional Details Revealed

Following the president’s signature, further details emerged. It will be mandatory for sports betting operators to offer self-exclusion options for players for durations ranging from 24 hours to six weeks. Additionally, players must be over 18 and verified using facial recognition software.

Beneficiaries of Legalization

The legalization of sports betting and iGaming is expected to have far-reaching benefits in Brazil. The state anticipates tax revenues of 10 billion BRL (1.86 billion Euro), which will be allocated to various sectors including tourism, national security, and social welfare.

Positive Industry Reactions

Following the initial removal of iGaming legalization, industry proponents criticized the decision, highlighting the missed tax revenue opportunities. The subsequent reversal has been well-received by the industry, with expectations of increased revenues.

What’s Next for the Law?

With President Lula’s signature, the Finance Minister must now establish regulatory guidelines for providers. It is anticipated that the regulated sports betting and iGaming market will be introduced in the second half of 2024. Over 130 providers have reportedly expressed interest in obtaining licenses.