Brazil’s Senate was set to discuss the country’s sports betting legislation but has once again delayed its crucial vote. The Economic Affairs Commission (CAE) was supposed to address the bill on Tuesday, but the meeting was rescheduled for Wednesday, further pushing back the possibility of a full Senate vote.
The delay is due in part to the numerous amendments and changes that have been made to the bill, which had previously received approval from the Chamber of Deputies in September. One of the main points of contention revolves around the proposed tax rates on sports betting companies. With at least 30 amendments inserted into the text, progress is being affected, and the chances of the bill being fully approved this month are diminishing.
Senator Ângelo Coronel, the CAE’s administrator of the bill, reportedly made alterations to the original text of the bill, including reducing the proposed tax from 18% to 15%. Additionally, he advocated for a decrease in the taxation of winners in fantasy sports contests from the initially proposed 30% to 15%.
The sports betting bill has been a hot topic of discussion in Brazil, with stakeholders closely monitoring its progress. The delays and changes to tax rates have added complexity to an already intricate legislative process. The tax change has also caused a dilemma, as the federal government initially estimated a substantial financial boost from the taxation of sports betting, projecting revenues ranging from R$2 billion to R$6 billion in 2024.
Coronel also added a measure requiring sports betting operators to have a Brazilian partner who holds at least 20% of their share capital. Additionally, a separate section of the bill would pave the way for the creation of an online casino market in Brazil, with details still being refined. The regulation aims to bring more security, reliability, and transparency to the sector while protecting players from possible negative side effects of illegal online gaming.
It remains possible that the CAE will vote on the bill soon, but the process has already been delayed several times. If it survives a full Senate vote, the bill must return to the Chamber of Deputies for further approval of all the changes.