Posted on: October 25, 2023, 06:44h.
Last updated on: October 25, 2023, 06:44h.
In a significant development for Brazil’s gaming landscape, the Senate is expected to vote today on a crucial sports betting bill. The proposed legislation, with Senator Romário de Souza Faria leading the reform efforts, has generated considerable attention. Senator Romário, a former soccer player and the president of the Senate’s Sports Commission, brings a unique blend of sports and legislative expertise to the forefront.
The voting process has faced intentional delays to provide an opportunity for public consultation. With over 80 amendments submitted, it is clear that there are diverse perspectives and considerations surrounding the proposed bill.
The Chamber of Deputies has already given its approval, setting the stage for the Senate’s crucial decision. Senator Romário’s influence in shaping the reformed draft reflects the merging of sports and legislative expertise.
Senate Wants Changes
An important aspect of the updated bill is the extension of the sports betting operator license period from three to five years. This change aims to enhance stability and longevity within the industry.
Additionally, operators have the flexibility to manage two distinct brands under a single license, allowing for versatility in their market approach.
While the gross gaming tax rate remains at 18%, there are modifications to the configuration of this taxation framework. This adjustment reflects a dynamic legislative process accommodating evolving perspectives and economic factors, differing from the Chamber of Deputies’ initial version.
The Ministry of Sports will receive the largest percentage (4%), followed by the Ministry of Tourism with 3.5%. The National Public Security Fund will receive 2.55%, and the Ministry of Education may receive 1.82%.
The Ministry of Finance predicts that a regulated sports betting market could generate up to BRL$12 billion (US$2.38 billion) in revenue. If this figure is reached, the various entities involved stand to benefit greatly.
The outcome of today’s Senate vote holds significant implications for the future of sports betting in Brazil, with potential ramifications for the broader gaming sector. However, there are still further steps in the process. If the Senate approves the updated language, the bill will need to return to the Chamber of Deputies for its final approval.
Brazil’s Long Road to Regulated Sports Betting
In 2018, Brazil legalized sports betting, but progress in the regulatory process came to a halt. The government set December 12, 2022, as the deadline to finalize the legalization of sports betting, but failed to meet it.
The Gambling Regulatory Framework, established in February 2022 to oversee various games of chance, including sports betting, has remained in the Senate despite its approval. Resistance from the evangelical caucus and former Brazilian president Jair Bolsonaro has contributed to the delay.
More recently, motivated by industry growth and a soccer manipulation scandal, the government has renewed its efforts. Finance Minister Fernando Haddad introduced Provisional Measure 1182/23 as part of a broader tax reform initiative to regulate sports betting.
This measure has been incorporated into another bill, representing an increased effort to address the regulatory framework surrounding sports betting. However, resistance in the Senate may pose challenges during today’s vote.