Although Brazil’s Chamber of Deputies recently approved a bill regulating sports betting, its passage by the Senate is by no means assured, Yogonet reported September 15.
Bill 3626/23 was the result of weeks of legislative work done after President Lula da Silva issued his Provisional Measure in July.
If it does pass it would create one of the largest wagering markets on the globe. But critics say the 18 percent taxation rate “could jeopardize online betting and gaming operations,” as Magnho José wrote in his editorial for BNLData.
He noted that this percentage would be added to a rate of from 13 percent to 16 percent for other taxes and wrote: “In short, the operator will have to work extremely hard in just three years to make viable a business with reduced product attractiveness, low probabilities, taxation above 32 percent and promotional limitations, while having to pay off the investments, the value of the subsidy and the monthly payment of the Inspection Fee. It’s going to be tough!”
Minister of Finance adviser José Manssur shot back: “The approval of the bill in the House was the result of a broad and productive debate between the Ministry of Finance and the rapporteur Adolfo Viana, with his highly qualified technical team. In the democratic process, each party certainly gives up something to reach a consensus, and the approval of the bill reflects this, so the Ministry of Finance was satisfied with the outcome and is ready to continue discussions, now with the Senate.”
Manssur added that the ministry expects to begin processing license requests in 2024 but that it already has ordinances ready to put in place.
Gaming law specialists Filipe Senna and Tiago Gomes told Games Magazine Brasil that the country could become one of the largest regulated gaming markets in the world.
Senna added, “Both the Provisional Measure and the Bill include criteria that go beyond taxation. Among them, the issue of consumer protection and the guarantee of their rights, especially in the Bill, where many players and bettors found it difficult to demand possible rights, payments, and challenge problems with sports betting operators.”
Senator Eduardo Girão warned about the “dangers of sports betting” especially as related to compulsive gamblers committing crimes to fund their habit. The senator called sports betting, “one of the biggest gateways for laundering dirty money from corruption and drug trafficking.”
