Around a fortnight ago, the Brazilian Economic Commission decided on a new tax rate for sports betting and online casinos. This will amount to 12% in future. Originally, an even higher tax rate of 18% was planned, but the gambling industry vociferously opposed this. But how attractive are gambling offers in Brazil in view of the new tax, which is significantly higher than in Germany?

It was only in the summer of this year that we reported that Brazil was planning to raise the tax on betting to a utopian 18%. At the end of November, the relevant economic commission approved the new tax. However, the tax rate will not be 18% as previously planned, but 'only' 12%. In return, the Brazilian people will have access to a legal range of sports betting and online casinos.

Brazil liberalises the gambling sector

Now that the Economic Commission has given its approval, the bill will go to the Senate. The final step is for Brazilian President Lula da Silva to sign the new law before it can become law. Brazil has been planning to legalise gambling in the country for several years.

A few months ago, the Ministry of Finance published a catalogue of requirements that betting operators in Brazil must meet in order to obtain a licence. For example, the Brazilian government expects all licence holders to have at least one subsidiary in the country. However, it remains to be seen when sports betting and online casinos will be legally available in Brazil.

Can sports betting and online casinos be attractive despite high taxes?

It is questionable whether betting and virtual slots can be attractive to players at all, given the above average tax rate of 12%. In July, we published an article on GambleJoe in which we questioned whether less regulation means less illegal activity. In Germany, for example, the sports betting tax is 'only' 5.3%, which means that in Brazil the tax will be more than twice as high.

The current bill only legalises certain sports betting and online casinos. Certain types of betting, such as fantasy sports and political betting, will not be included.

Image source: https://pixabay.com/de/illustrations/brasilien-flagge-südamerika-olympia-1542335/

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