The vote today in Brazil’s Senate Plenary was delayed to December after more than 100 changes were made to the bill.
The Senate Plenary, which was originally scheduled to vote today (29th November), has decided to postpone the vote to a date that is yet to be confirmed in December.
The bill was presented by Senator Angelo Coronel who is a major proponent of legalisation in Brazil.
More than 100 amendments have been proposed and will be reviewed. The proposed amendments include taxing fantasy sports at the same rate as online casinos and sports betting, which is 12%. Another proposal includes the inclusion of health in the process of exclusion.
The vote has been delayed due to the amendments requested and the lack of quorum.
Rodrigo Pacheco will have to choose the date of the next vote, which is likely to take place in December.
The bill will then need to go back to the Chamber of Deputies to be reviewed. The bill will be sent to Luiz inacio Lula Da Silva’s office for signing if the changes are approved.
Bill 3 626 / 23 – The details
The Economic Affairs Committee approved the report on 21 November.
Taxation has been reduced to 12% from the original 8%. This is a welcome change, especially with the addition of the online casino in September.
The original Provisional Measure 1 182 (PM), which set out the initial 18%, has been reduced by a considerable amount.
Taxation of bettors has been reduced from 30 to 15 percent.
The license fee has been set at R$30m. (PS4.8m/EUR5.6m). The licence will last for five years.
Taxes on sports betting and casinos
If the bill passes, the 36% tax on sports will go towards tourism and the 28% to sport. The public safety initiative will receive 14% of the tax, and education and social protection will each get 10%.
It is expected that the value of inspection charges will also be altered. The value of inspection fees will also be changed. It will instead be calculated based on GGR levels that are lower.
Brazilian operators who wish to start a business must first receive the approval of the Ministry of Finance.
Operators must be partnered with a Brazilian company that owns a minimum 20% of their capital. The operators must also have cybersecurity systems that are up to date.
It also states that operators must implement processes for identification. The bill specifies that facial recognition is a possible method.
Brazil will no longer allow unlicensed operators to advertise. B2B companies will also be forbidden from supplying technology to B2C businesses that are not licensed. Bonuses are also banned.
What brought us here?
Brazil’s story of legalised casino and sports betting has been a complex one, as we have covered in depth on iGB.
In May, the Brazilian government released PM 1.182, which allows sports betting.
Da Silva gave the PM his all-clear. In July, the president signed it as law.
The PM’s initial reception was poor. Main points of disagreement were the 18% rate on taxes, restrictions in advertising and unclear regulations around payments.
Bill 3,626/2023, which amends PM 1,182, was then introduced.
Online casino was added as the biggest new feature. The Chamber of Deputies approved this in September with a tax rate of 18%.