After an impressive 735% growth from 2021 to 2024, the sports betting market in Brazil is forecasted to reach even more astonishing numbers.
According to the Associação Nacional de Jogos e Loterias (ANJL) – which stands for National Association Of Games And Lotteries – the regulation of online sports betting is still under consideration by the Ministry of Finance, but a solution is expected by December 31, 2024. “The Ministry of Finance believes that by December 31, the companies that applied for licensing will be ready”, said the President of ANJL, Plínio Lemos Jorge, in an interview for IstoE[1].
Main Topics Of The Approved Regulation Proposal
The proposed regulation was approved last year by the National Congress. The text includes:
- A 15% tax on winnings for bettors.
- A 12% tax on the revenue of the companies.
- Requirement for a headquarters in Brazil – currently, all operate in Europe or the United States.
- A Brazilian Cadastro Nacional de Pessoas Juridicas (CNPJ), a 12-digit company tax identification number.
Lemos Jorge emphasizes that starting January 1st, 2025, sports betting companies will need the CNPJ to pay Brazilian taxes, including municipal and even state taxes. Without a CNPJ, companies will not be allowed to operate in Brazil.
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Source: Associação Nacional de Jogos e Loterias (ANJL)
Pix As A Driver For Sports Betting Growth
One of the main drivers for sports betting success is Brazil’s instant payment method, Pix. Launched in November 2020 by the Central Bank of Brazil, the system compounds over 155M+ users, making it the most popular payment method in Brazil. With Pix, users can easily transfer amounts as low as R$ 0,01 to accounts from any bank institution for free, 24/7.
According to the ANJL, over R$ 12B was moved around in 2023 with online sports betting. The majority of these transactions were made with Pix.
The president of the Associação de Gestão de Meios de Pagamentos Eletrônicos (Pagos) – which translates to “Association of Electronic Payment Management” –, Lincoln Rocha, believes that Pix will become even stronger with sports betting regulations.
Rocha mentions the prohibitions on payments via boleto bancario and credit cards as the driver for Pix’s growth: “Cash, boleto bancario, checks, virtual assets, and cryptocurrencies are not allowed. Another payment method that is prohibited by the regulation is the credit card”, he explained.
To learn more about payment regulations in sports betting, check out this article.
Meet CommerceGate, Your Payment Advisor In Brazil
Looking to tap into the Brazilian online sports betting market? Then you’ll need a payment partner like CommerceGate. With CommerceGate, your business benefits from:
- Access to the most popular local payment methods, i.e. Pix, boleto bancario, and local cards like ELO, Aura, and Hipercard.
- Customized and frictionless payment solutions catering to operators in Brazil.
- Dedicated Customer Success Managers to get local solutions to the other level of expertise.
- Licensed operations to minimize disruptions like account blocks.
Get immediate access to funds and swift, transparent fund transfers with fair exchange rates, as well as detailed transaction analysis for complete control.
Increase your sales in Brazil with CommerceGate. CommerceGate specializes in providing local, robust, and secure payment solutions that support diverse online businesses in Brazil and LATAM. Book a free 30-minute consultation with one of our experts, and get started today!
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[1] https://istoe.com.br/apostas-esportivas-devem-crescer-em-2025-apos-a-regulamentacao-preveem-especialistas
