Tax authorities have issued a ruling on the income tax treatment of gains earned from online games and betting.The ruling provides some welcome clarity on the government's view of the proper tax treatment of fixed-odds betting prizes for Brazilian residents, especially for operators. On 20 January 2025, the Federal Brazilian Tax Authorities (RFB) published Solução de Consulta (SC) - Cosit 2/2025 (dated 16 January 2025) (the Ruling), addressing the income tax treatment of gains from online games and betting, as well as net prizes from fixed-odds betting.BackgroundBy way of background, following the legalization of fixed-odds betting by Law 13.756/2018 (as amended)...