In review: licensing and taxation of gambling activities in Brazil
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According to the Misdemeanour Law, games of chance are prohibited in Brazil. Caixa's monopoly on lotteries and Decree Law No. 96,993 of 17 October 1988 regulate horse-race betting. SECAP is in charge of regulating lottery activities in the country. The Ministry of Agriculture, Livestock and Food Supply is responsible for the regulation of horse racing. Poker is not regulated. Neither are social games nor any other kind of games. Remote and land-based gambling is allowed. There is no distinction between online gambling and bricks-and-mortar gambling for horse races.
Lottery operators are not taxed, but they have pre-established social destinations set by law. Jockey clubs pay ordinary corporate taxes and the contribution to the Coordination Commission for National Horse Breeding. The gamblers are also taxed.
Sports betting and casino winnings obtained by Brazilian players on offshore websites or land-based operators are subject to taxation in Brazil. Poker prizes are not subject of this type of tax withholding. Law 13,756/2018 sets forth that all prizes from the fixed-odds sports betting lottery that are above the exemption limit of the personal income tax (1,903.99 reais) will be subject for 30%.
