Understand what changes with new rules for online sports betting

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Law sanctioned on Saturday (30) prohibits betting for minors under 18 and people who may have influence over the games. It also taxes fantasy-style games and online casinos. President Luiz Inácio Lula da Silva (PT) sanctioned on Saturday (30) the law that regulates the online sports betting market. The law is one of the government’s measures to increase revenue in 2024. With the law, companies and bettors will have to pay taxes. The new rules also prohibit under-18s and people who may have influence over the outcome of betting games. Understand the changes: who is prohibited from playing? What is the tax rate? Does the law apply to online casinos? Will fantasy-style games be taxed? Will companies need authorization? When do the rules come into effect? Who is prohibited from playing? The law prohibits minors under 18 from placing bets and prohibits the participation of: owners and people who work in betting companies; public agents linked to the regulation and supervision of the betting market; people who have access to the computerized betting system; people who have or may have influence on the outcome of games, such as sports officials, referees and athletes; people diagnosed with ludopathy, which is the compulsion to gamble. What is the tax rate? Players will pay a 15% tax on the net prize through Personal Income Tax (IRPF). Companies will be taxed 12% on revenue. The rates are lower than intended by the economic team, which stipulated 18% for companies and up to 30% on the premium for individuals. According to initial calculations, the revenue would be R$10 billion. However, Congress had defined an exemption range for premiums for individuals, worth up to R$2,112. This section was vetoed by Lula and will be analyzed again by the Legislature. Does the law apply to online casinos? Yes. When the text was processed in the Chamber of Deputies, the rapporteur, deputy Adolfo Viana (PSDB-BA), included in the text the regulation of online games, such as casinos. The prediction was dropped in the Senate, but returned to the text when the Chamber analyzed it again. Lula kept the excerpt in the published text. Will fantasy-style games be taxed? Yes. Fantasy style games will be taxed at a rate of 15% on the prize for individuals. In this category, the bettor manages sports teams by virtually fielding real athletes. The measure was included to equalize the taxation of different types of virtual games. Will companies need authorization? Online betting companies must pay a fee of R$30 million to obtain an operating license and operate in Brazil. Furthermore, only companies incorporated under Brazilian legislation, with headquarters and administration in the country, may operate. However, the Ministry of Finance still needs to publish the standard that regulates this authorization request. In the case of fantasy-style games, companies are exempt from authorization, as they do not qualify as lottery operations, commercial promotions or fixed-odd bets. When do the rules come into force? The law came into force on the date of publication, that is, on Saturday (30). However, some items have specific dates to come into effect: allocation of resources from the 12% collection on companies’ revenues will come into effect on April 1, 2024; disseminating advertising or commercial advertising from unauthorized companies will only be considered an administrative infraction subject to punishment when the government publishes the rule that regulates the authorization process.

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