The Brazilian Senate has been handed the sports betting bill now that the Chamber of Deputies has passed it. The upper chamber has 45 days to pass the legislation, iGaming Business reported September 28.
Bill 3626/23 will regulate sports betting, which has been legal for a couple of years without any regulatory infrastructure.
Rodrigo Pacheco, president of the Federal Senate of Brazil, said the bill would have to be processed within 45 days in tandem with an examination by the Sports Commission (CEsp) and the Economic Affairs Commission (CAE). The president has yet to appoint a rapporteur for the bill.
Pacheco recently told fellow lawmakers: “We know how important it is to have structural projects to increase revenues and sustain the fiscal system.”
Minister of the Secretariat of Institutional Relations Alexandre Padilha added, “the bill has as its first objective to regularize an economic activity that is growing in Brazil and around the world.”
During this period amendments could be proposed to the bill before the Sports Commission. Later it will be passed to the Senate Plenary and after November 11 it will be put on the legislative agenda. The 45-day deadline gives the matter some urgency.
Once the bill is approved by the Senate, the federal government can begin enforcing it as law. It is anxious to do so as soon as possible to begin generating a regular stream of tax revenue.
Funds raised could also be used to invest in sports, tourism and social security, say some officials.
One group that doesn’t like the legislation as it stands is the Brazilian Institute of Responsible Gaming (IBJR), according to Yogonet.
The current draft would make it impossible for gaming companies to compete with illegal sites because the prizes for legal players will be smaller than ones given in the black market.
The current draft would actually discourage operators from obtaining a license and paying taxes, says IBJR.
The institute complains that neither lawmakers nor the executive branch have addressed their concerns. Members say they are reevaluating investing in the country or of providing sponsorships, which are an important revenue stream for many sports clubs.
IBJR issued this statement: “For the markets to succeed, maximizing public revenues and protecting the integrity of sports, betting, and the fight against money laundering, Brazil must change course and take the following measures: extend the duration of the operating license, readjust tax rates, adjust inspection fees, adjust licensing, as well as review the calculation of income tax withholding.”
