Brazilian President signs a law on sports betting and online gambling

Brazilian President Lula da Silva recently signed a law regulating sports betting and online gambling.

According to the contents of the document, only companies registered under Brazilian law in the country will be allowed to offer gambling. A three-year operator's licence, allowing bets to be accepted under three brands, will be available for 30 million Brazilian reais. Operators will pay a 12 per cent tax on income. The tax on players' winnings will be 15%.

Only licensed operators will be able to advertise sports betting and online gambling. At the same time, they will be prohibited from offering bonuses to customers. Operators will also be required to offer customers self-exclusion periods of 24 hours to six weeks.

The law is expected to generate more than R$3bn annually in taxes for the Brazilian federal government.

The Ministry of Finance has six months to create the regulatory framework.