Is sports betting legal in Brazil? Understand how it works

Sports betting has become increasingly common these days; The growth of the event is so great that websites offering the service have taken over advertising all over Brazil, with many even sponsoring some national championships. But the real question is: is sports betting legal in Brazil?

Although they are not considered illegal, There are a number of factors that could cause the website or betting company to break the law. Considering the new law aimed at regulating the online sports betting market in the country, mainly after the sanction of President Luiz Inácio Lula da Silva on December 31, 2023.

Therefore, today we will answer your main questions about sports betting in Brazil. Check out!

Is sports betting allowed in Brazil?

Yes! Since 2018, with law no. 13.756/18, It is possible to bet legally in Brazil. These bets can be placed on websites or private houses and must be placed on sporting events.

For example, in football it is possible to choose a specific winner, a combination of results, or even more specific elements such as the number of corners or the number of goals in the match.

However, since betting sites and platforms became popular in the country, especially during the Covid-19 epidemic, the government has tried to regulate these activities in Brazil.

This is because, according to the federal government itself, the country failed to collect R$24 billion By not regulating these activities.

From operating in other countries to evade national taxes, to the exchange of values ​​between websites and bookmakers, where values ​​are transferred without including fees, there are a number of reasons that can lead to the crime of tax evasion. , because many bets were not even included in the Income Tax return.

Therefore, as of April 1, 2024, both these betting platforms and the bettors themselves will have to comply with the new law that will come into force on this date throughout the country.

Why is gambling prohibited and sports betting prohibited?

Gambling in Brazil is prohibited by the Criminal Offenses Code for a number of factors. The most important of these is to protect the emotional and financial health of punters. because this activity can lead to compulsive behavior or addiction to constant betting.

And unlike sports games, they do not have a proven mechanism for their success.

In other words, many of these devices, from slot machines to roulette to electronic gaming applications such as the famous “Tigrinho”, have elements that in most cases cause the player to lose, compared to “home”, creating a huge win. bettor’s loss.

Also in Brazil for many years Some gambling is directly linked to organized crime. From money laundering to the exploitation of Jogo do Bicho points or slot machines, there are a number of criminals who use these tools to carry out their activities.

And as previously mentioned, unlike sports betting, where a new law will come into force on April 1, 2024, gambling will continue to be banned across the country. It is worth noting that there is bill 442/1991, which aims to regulate all these activities in Brazil, including Jogo do Bicho, but there is no set date for its vote.

What was the sports betting law like?

With the approval of the President, some issues came into force with the new sports betting law. After this, Who is prohibited from playing?:

• under 18 years old;
• Owners of betting companies and everyone working there;
• Public agencies involved in the regulation and supervision of the betting market;
• People who have access to a computerized betting system;
• People who have or may have an impact on the outcome of the matches, such as sports directors, referees and athletes;
• People diagnosed with ludopathy with compulsive gambling.

Regarding the tax rate, bettors will have to pay some amount. Personal Income Tax (IRPF) rate of 15% on net premium. However, Congress had defined an exemption range for prizes valued up to R$ 2,112. However, this section was vetoed by the president and will be reconsidered by the Legislative Assembly, with no firm date yet set.

Companies in this sector will be taxed at 12% on total income. They must also have a special business license worth R$30 million and operate on national territory.

Another very important point is that advertising or commercial advertising of unauthorized companies will be considered an administrative violation and will be subject to punishment. For example, sponsored posts by “Jogo do Tigrinho” will be considered a crime starting April 1, 2024, the date the law comes into force.

What are the legal betting houses in Brazil?

Due to the Interim Measure already issued by the Federal Government, bettors must comply with certain rules to be legalized in Brazil; for example, paying a fee of R$30 million to obtain a business license in the country.

Additionally, only companies established under Brazilian legislation, that is, whose headquarters and administration are located in the country, can operate. The main legal betting houses/sites in Brazil include:

• Bet365;
• Betan;
• Betfair;
• Lucky Sports;
• Sports Betting;
• Sportsbet.io;
• Parimatch.

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