With a total area of 3,265,080 sq miles and a populace of more than 214 million, Brazil is the biggest and most populated nation in Latin America (it is the fifth-largest country in the world in size and population). Twenty-six states, one federal district, and 5,570 municipalities comprise the Brazilian federation.
Brazil's GDP has declined since 2012 due to the real's devaluation against the US dollar and the economic downturn that started in 2015; it was previously the sixth-largest economy in the world in 2011. In Brazil, almost all forms of gambling have been outlawed for over 70 years. The only authorized forms of gambling since 1941, when all games of chance were outlawed, are state-run lotteries and wagering on horse races. Poker is not prohibited in Brazil since it is considered a game of skill.
Regulation (and taxes) of gaming might aid in generating cash for the government in light of the current economic unrest. Congress is now debating many legislation proposals about casinos, bingo halls, internet gambling, and lotteries. The Tourism Law Bill contained integrated resort casinos, and an Integrated Resort Bill was submitted in 2020.
Brief Overview
The rule calls for developing management software named "Audit and Control System" (SAC), which the Ministry of Economy will use to keep track of wagers and prize payouts. This software must feature a cashless system to prevent the usage of money and banknotes in gaming machines and tables. Additionally, Brazilian national identification documents are required for players, while passports are required for foreigners. According to Carreras, legalization might result in $3.9 billion in yearly tax revenue and create +200,000 employment in Brazil.
The "Gaming Inspection Rate" (Tafija) for casinos will be $120,000 per licensed domain per quarter. At the same time, internet gambling operators will pay a $60k tax, and bingo and jogo do bicho (instant games) players a $4000 tax. The plan sets a Cide-Jogos of 17% for all modalities and exempts gaming and betting operators from existing taxes, including ISS, PIS/PASEP, Cofins, IRPJ, and CSLL.
The bill's text also indicates that 12% would go to the Brazilian Tourism Institute (Embratur), 16% would go to the Municipal Participation Fund (FPM), 16% would go to the State Participation Fund (FPE), and 10% will go to sports programs.
Additionally, 6% will go to public safety, 5% to disaster prevention, 5% to reconstruct disaster-affected areas, 4% to public health, 4% to gaming programs, 4% to the national "Fund for Children," 4% to support animal protection programs, and 4% to the Student Financing Fund. Meanwhile, income tax will be charged at 20% of net earnings on player awards. The "running entity" will be responsible for holding the fee; it will not apply to prizes or winners that do not generate a net profit of $2,000 or more.
Certainty Still Exists
Several factors are at play, making it impossible to predict how the gaming industry in Brazil will appear by the end of 2022. However, players from all facets of the gaming business should be gathering pertinent information now and formulating a plan to take advantage of upcoming regulation changes so they can get started as soon as the sleeping giant awakens to what seems to be a profitable but challenging market. Brazil is not for beginners, as the renowned Brazilian composer Antônio Carlos Jobim famously stated.
Source: 22bet mobile for Brazilians
