Brazil’s Senate delays discussion of sports betting again
Brazil’s Senate was supposed to consider the country’s sports betting legislation, but a key vote has once again been postponed. The Economic Council (CAE, by its Portuguese abbreviation) is due to discuss the bill on Tuesday. The session was postponed until Wednesday, further delaying the possibility of a full Senate vote.
The delay is partly due to numerous additions and changes to the bill the House approved in September. One of the points of contention revolves around the proposed tax rates for sports betting providers.
At least 30 amendments were inserted into the text. That would hamper progress and increase the likelihood of full passage of the bill this month.
Rewrite this book
The original text of the law called for an 18% tax. But the bill’s CAE administrator, Senator Angelo Coronel, reportedly changed it to 15 percent. Coronel reportedly made a number of other changes, including a significant reduction in taxes for winners of Fantasy Sports contests. Brazil's Senate said in a press release that it favored lowering the originally proposed tax from 30 percent to 15 percent.
The sports betting bill has become the subject of heated discussion in Brazil, with stakeholders across various industries closely monitoring its progress. Delays and changes in tax rates complicate an already complex legislative process.
Tax reform also poses a dilemma for the Senate. The federal government initially expected a significant fiscal boost from the sports betting tax, with revenue expected to reach 2 billion reais to 6 billion reais ($408 billion to $1.22 billion) in 2024.
In addition, Coronel added a measure calling for further changes in the structure of sports betting operators. The company must have a Brazilian partner holding at least 20% of the share capital.
iGaming legislation remains in effect
A separate part of the bill would lead to the creation of an online casino market in Brazil, although details remain unclear. Like sports betting, online betting can only be operated by companies located in the country and comply with legal requirements.
Unregulated online gambling is very common in Brazil. Legalizing this activity will bring greater safety, reliability and transparency to the industry.
The regulations also include protecting players from the possible negative consequences of illegal activities, such as fraud and scams. Additionally, it will enable governments to introduce controls and measures that adequately address gambling education and harm issues.
The CAE is likely to vote on the bill on Wednesday, although it has delayed the process several times. The Senate cannot bring the bill to a vote until the committee completes its consideration. Even so, if the bill passes a full vote in the Senate, it would have to be sent back to the House for further approval of any changes.
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Source: www.casino.org
