The Brazilian Senate is set to consider a bill legalizing sports betting.
Brazil's Senate is set to vote on a crucial sports betting bill this Tuesday. The legislation is led by Senator Romário de Souza Faria, who is also a former soccer player and the Senate's Sports Commission president.
The Senate's decision comes after deliberate delays designed to allow for public consultation. With over 80 amendments being submitted, it's clear that there's a wide range of opinions regarding the proposed bill.
The revised bill has extended the sports betting operator license period from three to five years, aiming to create more stability and longevity in the industry. Operators will now be able to manage two brands under a single license as well.
The Chamber of Deputies has already approved the legislation, and the Senate's decision will be pivotal for the future of sports betting in Brazil. Senator Romário's involvement in shaping the draft highlights the rare convergence of sports and legislative knowledge.
The Senate's vote has major consequences for the future of sports betting in Brazil, potentially affecting the broader gaming industry. However, the road ahead is still long. If the Senate approves the revised bill, it will need to return to the Chamber of Deputies for final approval.
Tax Amendments
The gross gaming tax rate remains 18%, but the way it's structured has changed. This departure from the Chamber of Deputies' original proposal reflects the adaptable nature of the legislative process, accommodating new perspectives and economic considerations.
Under the revised bill, 4% of the tax revenue will go to the Ministry of Sports, while 3.5% will go to the Ministry of Tourism. The National Public Security Fund will receive 2.55%, and the Ministry of Education may receive 1.82%.
Finance Minister Fernando Haddad predicts that a legal sports betting market could generate up to BRL$12 billion (US$2.38 billion) in revenue. If this figure is reached, the different entities involved in the process could be in for a significant financial gain.
A Brief History of Sports Betting in Brazil
Back in 2018, sports betting was made legal in Brazil, but progress on establishing a regulatory framework stalled. December 12, 2022, was set as the deadline for concluding the sports betting regularization process, but that goal was not met.
In February 2022, the Gambling Regulatory Framework was approved to oversee various games of chance, including sports betting. Although endorsed, the law has remained stagnant in the Senate, facing major opposition from the evangelical caucus and former Brazilian President Jair Bolsonaro.
Recently, stimulated by the industry's growth and a scandal involving soccer results manipulation, the government has redoubled its efforts. Provisional Measure 1182/23 was created by Finance Minister Fernando Haddad to regulate sports betting, playing a crucial role in a wider tax reform initiative.
An additional bill incorporated this measure, representing a renewed push to address sports betting's regulatory framework. However, some resistance lingers in the Senate, which might cause complications on Tuesday's vote.
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Source: www.casino.org
