Brazil: Implemented with partial veto Law on Fixed-Odd Betting including direct tax provisions (3626/2023)

On 30 December 2023, Brazilian legislative project 3626/2023 on Fixed-Odd Betting, which includes direct tax provisions, was implemented after approval by the President, with a partial veto on certain parts of the provision pertaining to fixed-odds betting lotteries. According to the legislation, net winnings accrued from fixed-odds betting, including fantasy sports, are subject to a 15% personal income tax. The term "net prize" is defined as the positive outcome derived from fixed-odds bets made within a given year after deducting any losses incurred from bets of a similar nature. The President vetoed a section that would have exempted prizes up to BRL 2'112 from taxation, citing concerns about maintaining tax equality. Subsequently, the vetoes will be subject to review by the National Congress. The implemented law becomes known as Law 14790/2023.