Remote gambling

Types

Is remote gambling permitted and, if so, what types?

Generally speaking, current legislation does not allow online or remote gambling activities.

On the other hand, in the case of those gambling activities allowed under Brazilian law. Horse racing entities already offer bets online in Brazil, while the state-owned Brazilian Federal Savings Bank – the federal lottery operator – offers online betting for those who register in their website.

Licensing

What are the criteria for obtaining a licence to operate remote gambling?

Current legislation contains no provisions relating specifically to online gambling.

How do the licensing criteria for remote gambling operators differ from those applicable to land-based operators?

Current legislation contains no provisions relating specifically to online gambling.

Cross-border gambling

May operators located in other countries offer internet gambling to consumers in your jurisdiction without obtaining a licence there?

Current market practice in Brazil demonstrates that wagers in remote gambling activities are considered to have taken place in the location of the operators’ servers. However, it remains unclear whether there is criminal liability if servers hosting online gambling sites are based in a country where gambling and betting are permitted.

May operators licensed in your jurisdiction offer internet gambling to consumers in other countries?

Current legislation contains no provisions relating specifically to online gambling services offered by Brazilian individuals or legal entities abroad.

Taxes

What tax rate applies to each form of remote gambling?

With respect to remote gambling activities where the servers hosting are located abroad, Brazilian tax authorities understand that eventual income generated by such activities is taxable in Brazil. In this case, any income earned by a Brazilian resident must be taxed on a monthly basis and is subject to the following tax rates in anticipation of the income tax due upon the delivery of the income tax statement:

  • up to 1,903.98 reais: exempt;
  • between 1,903.99 reais and 2,826.65 reais: 7.5 per cent of the income;
  • between 2,826.66 reais and 3,751.05 reais: 15 per cent of the income;
  • between 3,751.06 reais and 4,664.68 reais: 22.5 per cent of the income; and
  • above 4,664.68 reais: 27.5 per cent of the income.