New Setbacks Further Postpone Brazil’s Crucial Sports Betting Bill

The eagerly anticipated Senate vote on Brazil’s sports betting bill, Bill 3,626/23, has faced yet another postponement, marking the second delay in its passage. This latest failure to vote on this landmark legislation stemmed from the absence of certain senators attending the United Nations climate conference (COP 28) in Dubai, as revealed by Senator Angelo Coronel (PSD-BA).

Progress Suffered from Disagreements and Ambitious Amendments

While the bill’s inclusion of online casino gaming has been a focal point of contention, several senators, including Eduardo Girão and Carlos Portinho, have expressed concerns about the absence of a comprehensive regulatory framework for online casinos. The Chamber of Deputies shared this opinion, approving the proposal to include iGaming in September. However, some senators advocate for more deliberation on the matter.

This troubled legislation has faced over 100 revisions since its submission to the Senate. Modifications suggested by the Senate Economic Affairs Commission (CAE) propose a 12% tax rate on sports betting operators and a 15% tax on player prizes, lower than the Ministry of Finance’s initial proposals of 18% and 30%. The CAE justifies these reduced rates as essential to attract consumers and businesses to Brazil’s regulated market.

Brazil’s Ministry of Finance reported significant interest from operators after releasing specific requirements for operators in late October, necessitating the establishment of dedicated service centers for customer support and emphasizing adherence to ethical and legal standards, including vigilance against irregular or suspicious transactions reported to the Financial Activities Control Council (COAF).

Regulated Wagering Will Bring Substantial Benefits

The Betting Bill represents a vital component of Brazil’s 2024 budget, contributing through license fees and anticipated tax revenues. However, given the limited timeframe before Congress recesses in late December, many stakeholders have expressed skepticism about the bill’s approval this year, especially considering the extensive amendments proposed by senators in November.

The Betting Bill’s journey doesn’t end with the Senate. It must return to the House of Representatives for review before reaching President Lula’s desk for final approval. The potentially lengthy approval process poses a significant question mark due to ongoing tensions further complicating its legislative path.
Growing impatience by bill proponents and industry stakeholders places increasing pressure on Brazilian authorities to hasten the voting process. The updated legislation will happen, but the government’s haphazard approach is rapidly eroding public confidence in lawmakers’ ability to balance financial interests with customer safety.