Delay in Legalizing Online Sports Betting in Brazil
In a surprising twist, the long-awaited vote on Brazil's Bill 3,626/23, designed to legalize online sports betting, has hit a snag. The upper house of Congress, the Federal Senate, had planned to vote on the bill yesterday, but the final vote was postponed at the last minute due to opposition against the inclusion of language that would also legalize online casino games.
Critics argue that the legislation lacks clarity, as online casino gambling wasn't mentioned when the bill was initially introduced in the lower Chamber of Deputies in July. Further, they contend that the bill does not specify the types of games to be allowed or provide details on how the new vertical would be regulated.
The government, especially President Luiz Inacio Lula da Silva, see the passage of this bill as a crucial step to generate approximately $2.3 billion in tax revenues to aid in Brazil's economic recovery program. Despite the last-minute suspension, negotiations in Brasilia reportedly went down to the wire. However, those opposed to the inclusion of online casino gambling language managed to convince Federal Senate Vice-President Veneziano Vital do Rego to postpone the vote.
Proponents of the bill will have to wait until Federal Senate President Rodrigo Pacheco returns from his attendance at the COP28 event in Dubai to schedule a new vote. The delay could potentially result in the bill being amended further or even sent back to the Chamber of Deputies for reconsideration.
One key figure in the bill's progression, Adolfo Viana, supported the inclusion of online casino games language in an attempt to maximize tax revenues. This stance contradicted an amendment proposed by politician Romario de Souza Faria, who argued the legislation should be limited only to fixed-odds sports betting.
Upon signing off the pre-vote review of Bill 3,626/23 on behalf of the Economic Affairs Commission (CAE), Senator Angelo Coronel agreed with Viana and recommended reducing the tax rate for online sports betting operator income from 18% to 12%. Coronel also proposed halving the duty on player prizes to 15% to encourage consumer and business participation in the new market.
The postponement of the vote might stem from a variety of reasons, such as a lack of consensus, the need for further debate, technical or legal issues, public or industry feedback, or a busy political or legislative schedule. For the most accurate and up-to-date information, it's recommended to check official sources or recent news reports related to Bill 3,626/23.
- Proponents of the bill, despite the delayed vote, continue to support the inclusion of online casino games to maximize tax revenues, as suggested by Adolfo Viana.
- This stance conflicts with an amendment proposed by politician Romario de Souza Faria, who advocates for limiting the bill only to fixed-odds sports betting.
- Senator Angelo Coronel, representing the Economic Affairs Commission (CAE), agreed with Viana and recommended reducing the tax rate for online sports betting operator income from 18% to 12%.
- Additionally, Coronel proposed halving the duty on player prizes to 15% to encourage consumer and business participation in the new market.
