Brazil Senate Puts Sports Betting and iGaming Discussion on Hold

Once again, the Brazilian Senate has found a new method to postpone the voting on a sports betting and iGaming bill, further delaying the legislative process that has hindered the project.

The scheduled vote on Wednesday in Brazil's Senate plenary for the bill regulating the fixed-odds sports betting market and online casinos has been postponed once again. According to an announcement on its website, the Senate decided to defer the discussion.

There was a slight ray of hope that the Senate would advance and return the bill to the Chamber of Deputies in November. However, that possibility has now been ruled out, and it remains uncertain when the Senate will conduct its vote.

Senators Opposed to Gambling Persist in Blocking

The main issue at the centre of the debate concerns the incorporation of online casinos into the bill, with opposition senators expressing particular criticism. This opposing faction argues that the proposed legislation inadequately regulates the online casino industry and raises concerns about the absence of clear guidelines for overseeing online gambling.

Senator Ângelo Coronel, who is responsible for the bill, contends that the iGaming sector has considerable potential to contribute to government revenue and, as such, should not be omitted. The Ministry of Finance projects that the proposed legislation could yield around R$2 billion (US$407.6 million) for the government in 2024.

To address the concerns raised by the opposition, Senator Veneziano Vital do Rêgo, the vice-president of the Senate, chaired the session in the absence of Senate President Rodrigo Pacheco, who is presently in Dubai attending COP 28, the United Nations Conference on Climate Change.

In response to the opposition's request, the Senate postponed the vote, and there is no designated date for the resumption of the voting process. It is anticipated that the vote will be rescheduled upon Pacheco's return next week.

The ongoing delays, among several others initiated by the Senate, are raising concerns within the government. The bill is a crucial priority for the economic team, integral to their endeavours to enhance revenue in 2024.

More Debate Ahead

Coronel has proposed numerous amendments to the bill. If the Senate grants approval to the revised text, it must then be sent to the Chamber of Deputies for additional scrutiny and approval.

The bill proposes a 12% tax on sports betting companies, down from the previous 18%. Additionally, it suggests a 15% personal income tax on bettors’ net winnings. This would be deducted annually and applicable only to earnings surpassing the exemption line of BRL2,112 (US$430).

Moreover, the proposal delineates the establishment of advertising regulations within the sports betting and iGaming sectors. The Ministry of Finance is designated to oversee the formulation of these advertising regulations and will also assume the responsibility of supervising all betting and gambling activities.

The legislative discussions have resurfaced in Congress in the midst of a Parliamentary Commission of Inquiry investigating the sports betting market. This inquiry has been initiated following investigations that uncovered evidence of companies in the gaming sector, among others, intentionally manipulating the outcomes of soccer matches.

Both the ongoing inquiry and the investigation by Brazilian authorities are ongoing. Several soccer players have already been identified as participants in the scheme, with the likelihood of more names emerging in the coming weeks.