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BCraft Software Blog

Online Casino Licensing in Brazil

As of February 24, 2022, Brazil's Chamber of Deputies approved a bill that opens the door for casino operations in the country.
The bill is now under review by the Federal Senate. Companies interested in obtaining a casino license must adhere to specific requirements. These include linking the casino to a resort with at least 100 high-end rooms, an auditorium, event halls, restaurants, bars, and shopping centers.
The casino can only occupy up to 20% of the resort's total area. The Ministry of Economy will be responsible for designating suitable locations for these resorts. The license will allow the operation of various types of games, including card games and electronic games, for a period of 30 years, renewable for an equal period. A fixed tax rate of 17% will be applied to betting operations, and income tax will be levied on prizes above R$ 10,000 at a rate of 20%.

Recent Developments in 2023

Brazil's government has taken proactive steps in 2023 to regulate the online gambling industry. An executive order was issued to initiate taxation on sports betting, a move aimed at boosting state revenues. This decision aligns with President Luiz Inacio Lula da Silva's economic team's strategy to diversify and increase revenue streams.

Key Points to Consider

  1. Resort-Centric Model: The new regulations require that casinos be part of larger resort complexes. How will this impact the scalability and investment needed for new entrants in the market?
  2. Taxation and Social Policies: The fixed tax rate and income tax on large prizes aim to finance social policies. What are the implications for both operators and players in terms of tax burdens?
  3. Geographical Limitations: The number of casino-resort structures allowed is based on the population of the state. How will this demographic-based approach affect market competition and consumer choice?

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Our specialists are well-versed in the latest regulations and can guide you through the process of obtaining a casino license in Brazil. Don't risk your reputation and financial position by operating without a license.