Brazil Senate vote on sports betting postponed again
After several delays, Brazil’s Senate is set to vote on Wednesday on a draft bill on “sports betting” and iGaming. However, the legislative debate followed the same path that the House of Representatives had been following for months before another deliberate delay occurred.
On Tuesday, many senators asked for a delay, citing the complexity of the issue and a low quorum that made full discussion difficult. Senate President Rodrigo Pacheco accepted the motion and postponed the vote until December 12.
The low quorum was due to the absence of senators from the COP28 (United Nations Climate Change Conference) in the United Arab Emirates. Given that COP28 will last until December 12, a vote on the bill that day seems unlikely.
time is limited
Action by senators opposed to the project led to the first delay on Nov. 29. Senator Angelo Coronel supported the issue and rejected the last-minute amendment in the plenary session, a move that was opposed by some colleagues.
Since then, delays have become normal practice, with senators inventing new reasons why they cannot discuss legislation.
The latest reason — the in-person absence of some senators — doesn’t hold up any better to scrutiny. The Senate has been meeting without staff since last week.
After the first delay, Pacheco stressed that senators must vote on projects initiated by the executive branch as part of "interim measures" within 45 days. This caused all other legislative discussions to be put on hold.
That changed on Nov. 12 when the Senate lifted the ban. That paves the way for senators to work on other proposed legislation. However, due to delays in committee deliberations, the item was not brought to the plenary meeting in advance.
Time is of the essence now because this year the Senate has until December 21 to make a decision. Parliament is prorogued from December 23. Senator Angelo Coronel reiterated the chamber's commitment to focus efforts on passing this and other pending proposals in the coming weeks.
MILLIONS OF DOLLARS BETTING
According to the Coronel report approved two weeks ago, companies in the industry will face a 12% tax on gaming revenue, a reduction from the 18% rate approved by the House of Representatives. The concession period is for five years and costs R$30 million ($6.1 million).
Each operator can operate up to three brands simultaneously. There are many online platforms. The Treasury reported this week that 134 companies had shown interest in the market.
Players pay 15% income tax on winnings. This amount only applies to premiums above the original range of Brazil's annual progressive tax schedule, which is currently 2,112 BRL ($432).
"We don't invent anything," Coronel explained in an interview with TV Senate. "Although it's secret, the game has been around for many years. Everything will be fine regulatory-wise, because both companies and players are will be taxed.”
This bill is very important to the federal government and is being actively promoted by Finance Minister Fernando Haddad. The government hopes to speed up the parliamentary process to ensure the law is passed next year.
The aim is to have sports betting and possibly iGaming contribute to the budget so that Brazil can achieve its "zero deficit" goal. However, the latest delay represents a time limit, and if further setbacks occur next week, the law could be enacted before the end of the legislative year.
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Source: www.casino.org
