Brazil Bets on Online Gambling Revenue to Help Balance Budget
- Congress approves regulation of online sports betting, casinos
- Government estimates 2 billion reais in extra revenues in 2024
A person places a bet online match during a match.
Photographer: Veejay Villafranca/BloombergThis article is for subscribers only.
Brazil’s lower house of congress Wednesday approved legislation to regulate online sports betting and casinos, a plan the government estimates will generate 2 billion reais ($407 million) in revenues in 2024 as it seeks to balance the country’s budget.
In a symbolic vote lawmakers passed the proposal, which states that betting sites will be taxed at an 18% rate on gaming revenues after payouts to winning gamblers are discounted. Bettors will receive an income tax exemption on prizes of up to 2,112 reais. Winnings above that threshold will be subject to a 30% tax rate.