IBJR – Instituto Brasileiro de Jogo Responsável

Studies suggest that the appeal of online betting may be at risk

On September 13, 2023, the House of Representatives approved the main text of Bill No. 3,626, which incorporates Provisional Measure No. 1,182 from July 25, 2023, with some modifications. One of the primary motivations behind these changes is to increase federal tax revenue.

The bill currently sets the concession fee at up to 30 million reais for up to three years. It also includes a supervisory fee and mandatory transfers equal to 18% of betting revenue (after deducting winnings).

A technical study by Tendências Consultoria, commissioned by the Brazilian Institute of Responsible Gaming (IBJR), suggests that these charges could encourage the illegal market, hindering the growth of the betting sector in Brazil. This study was presented at an event in Brasília on October 19.

Furthermore, the IBJR requested Pinheiro Neto Advogados to analyze the tax regime proposed in Bill 3,626 for fixed-odds sports betting.

Below, you can find the presentation, the technical note, and the full studies.

Economic Study on Online Betting Regulation: An Analysis of Bill 3,626/2023

Executive Summary of the Study

Presentation of the Technical Study

Analysis of the Tax Regime in Bill 3,626

Technical Note on Bill 3,626

Analysis of the Constitutionality of the Supervisory Fee