Game On: Fast Updates on iGaming February 7
New Audit & Tax Guidelines for Operators
The Secretariat of Prizes and Betting (SPA) has issued Technical Notice No. 229, detailing how licensed operators must report revenue and submit audited accounts. Gross Gaming Revenue (GGR) is now defined as:
Total revenue from bets – (Prizes paid to winners + Income tax on prizes)
Operators must pay a 12% tax on GGR, plus additional contributions:
- COFINS (7.6% of revenue)
- PIS (1.65% of GGR)
- ISS (2-5%, depending on the municipality)
Additionally, a monthly regulatory oversight fee ranging from BRL 54,419.56 (€9,070) to BRL 1,944,000.00 (€324,000) will apply based on revenue. Operators must submit reports via the SIGAP system, which SPA will evaluate for efficiency improvements.
Opposition to Land-Based Casino Regulation
As Brazil prepares to debate the legalization of land-based casinos, federal police have voiced concerns about potential money laundering risks. A bill allowing physical casinos, bingo, and horse racing is expected to be discussed in the coming months. However, political opposition from figures like Senator Eduardo Girão and the evangelical bloc has delayed progress.
IBJR Disputes Loterj’s Geolocation Claims
The Brazilian Institute for Responsible Gaming (IBJR) has joined a Supreme Court case against Loterj, arguing that geolocation technology is readily available and enforceable. This challenges Loterj’s claim that territorial restrictions are not technically feasible. The court has upheld its ruling that Loterj must enforce geolocation measures or face significant fines.
Spotlight on Sportingtech’s Jacqueline Favraud
Jacqueline Favraud, Sportingtech’s Legal & Regulatory Affairs expert, shares her insights on Brazil’s gaming regulation, balancing business growth with compliance, and the importance of diversity in iGaming. With extensive experience in navigating Brazil’s evolving regulatory landscape, Jacqueline highlights how Sportingtech supports operators in adapting to new compliance requirements.