After the approval of Bill 3626/23, which seeks to regulate sports betting in Brazil, by the Chamber of Deputies, the text passed to the Federal Senate for analysis.
Initially, and through a political agreement, the bill was presented simultaneously with Provisional Measure 1.182/2023. The former would address the structure and administrative processes for the operation of the sports betting market, while the PM would focus on the regulation of the betting market.
Adolfo Viana
Since the corresponding commission was not formed to analyze the MP, its content was eventually incorporated into the bill approved by the House, as a substitute by the rapporteur, Representative Adolfo Viana (PSDB-BA).
The bill establishes that companies will be taxed 18% of their income, distributing this income as follows: education (1.82%), sports (6.63%), tourism (5%), social security (which according to the MP’s text would have 10%, but in the approved bill remained at 2%) and the National Public Security Fund (2.55%). On the other hand, the taxation of prizes paid to gamblers will have an income tax of 30%.
The concessions maintain an initial fixed fee of BRL 30 million (about $6 million) to authorize the operation of betting sites. This will authorize bookmakers to use an electronic channel (a betting app) per authorization, and payment must be made within 30 days of authorization. This authorization will have a maximum duration of three years and will be personal, non-negotiable, and non-transferable.
Unlike Provisional Measure 1,182/23, the bill establishes that only companies headquartered and managed in Brazilian territory may apply for authorization, leaving out foreign companies.
Regarding advertising, one of the most discussed issues, several legislators proposed since the enactment of the provisional measure to restrict or even prohibit the advertising of gambling companies.
One of the most fervent in this regard is Senator Eduardo Girão. “There is a very powerful lobby behind it that is hooking young and old. People who have never even had a drop of alcohol, just because it is a national passion, soccer, are now falling into this gambling because nowadays it is very difficult to watch a soccer game,” he said in an interview with the Senate Agency.
Eduardo Girão
The text approved in the Chamber of Deputies prohibits several points, such as making unfounded claims about the probabilities of winning or the possible winnings that players can expect or containing statements by personalities suggesting that gambling contributes to personal or social success.
Despite these limitations already in place, Girão vowed to work towards the bill’s rejection. “We are going to fight here in the Senate for the bill to pass through several committees and for all our fellow senators to understand how harmful this sports betting bill is. The text has come out of the House very badly. We will have to be very serene and responsible with Brazil and the Brazilians to reject it”, the senator said.
Original article: https://www.yogonet.com/international/noticias/2023/09/19/68832-brazil-bill-to-regulate-sports-betting-passed-to-the-federal-senate
