Brazil’s gambling laws: no credit cards or cryptocurrency
In an effort to regulate the sector, Brazil has implemented new laws for its sports betting and online gambling markets.Normative Ordinance No. 615's regulations forbid...
Brazil implements tax on gambling winnings
The Federal Revenue Service (RFB) of Brazil has completed the regulations regarding the taxation from online gambling, lotteries, and betting.
A new policy states that gains from gambling over BRL 2824 (about €530) will be subject to a fifteen percent personal income tax. According to reports, this barrier is equal to twice the average monthly salary for customers in Brazil. If your winnings are less than this sum, the tax won’t be charged.
Net winnings, which are determined by subtracting the entire amount wagered by the player from the total amount won, will be the basis for calculating the tax. Similar to state lotteries, gambling businesses must collect taxes by subtracting the fifteen percent tax directly from the source when awarding winnings to customers.
This tax structure is a component of the regulatory foundation established by President Lula da Silva’s recently signed Bill No. 3,626/2023, which permits the establishment of a federal sports betting and online gambling industry in Brazil. The imposition of this tax on player gains, however, has generated controversy.
Brazil’s National Association of Games and Lotteries (ANJL) has made a strong case against the tax, claiming that it places an excessive cost on users. In an effort to promote a competitive and healthy gambling environment, the ANJL has pushed for legislative amendments, asking the government to reevaluate the taxation.
Additionally, there have been past modifications to the gambling taxes that are imposed on businesses; following legislative reforms, the tax rates for these entities were lowered from eighteen percent to twelve percent. It was decided that this cut was required to keep the market competitive and guarantee the financial stability of licensed operators. The ANJL has cited instances from other countries that show how player taxes could encourage illicit gambling, indicating that a delicate balance must be achieved to support the long-term growth of Brazil’s dynamic new betting industry.
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