Brazil’s Senate to Vote on Legalizing Sports Betting and Online Casino

Prepare for a pivotal moment in Brazil’s gambling landscape as the Senate gets ready to cast its vote on the legalization of sports betting and online casinos. In this comprehensive guide, we’ll take you through the journey that has led to this critical juncture, highlighting key developments and potential implications. The decision holds significant ramifications not only for the industry but also for Brazil’s fiscal outlook. Stay informed about this historic vote set to reshape the future of gambling in Brazil.

As Brazil’s Senate prepares for a monumental vote on the legalization of sports betting and online casinos, it’s essential to understand the intricate journey that has brought us to this pivotal moment. Last week’s developments set the stage for a potential transformation of Brazil’s gambling landscape, and as the vote approaches, the stakes are higher than ever.

Last Tuesday (21 November) marked a crucial milestone as the industry awaited the decision of Brazil’s Economic Affairs Committee (CAE) regarding the fate of sports betting and igaming through Bill 3,626/2023. The outcome of this vote was initially scheduled for that day but faced a one-day delay at the request of senators, as reported by Senado Noticias.

The eagerly anticipated verdict from the CAE arrived on Wednesday, 22 November, signaling the green light for the bill to advance to the Senate plenary. This plenary session is now slated for Wednesday, 29 November, and its outcome holds the power to officially legalize sports betting and igaming in Brazil.

One of the critical aspects of the CAE’s decision was the approval of a 12% tax rate for operators, a significant reduction from the originally proposed 18% in Provisional Measure (PM) 1,182. Notably, this reduction carries implications for the allocation of tax revenue, with 36% earmarked for sports and 28% for tourism. The remaining portions will support public safety initiatives, education, and social security.

An important development during this process was the rejection of attempts to exclude igaming—added to the bill in September—from the legislation.

To grasp the full significance of this upcoming vote, it’s crucial to trace the journey that brought us here. The momentum for sports betting in Brazil gained momentum in 2023, with key events occurring just halfway through the year. In May, Brazil’s government introduced PM 1,182, a significant milestone for sports betting. President Luiz Inácio Lula da Silva signed this measure into law in July.

However, this initial effort faced substantial criticism, with major concerns surrounding the proposed 18% tax rate, advertising restrictions, and unclear payment regulations. The taxation aspect drew particular ire from critics, overshadowing other crucial elements of the proposal.

But the story didn’t end there. Soon after, Bill 3,626/2023 entered the picture, making amendments to PM 1,182. The most significant change was the addition of online casino into the equation, further diversifying the gambling landscape. Importantly, this iteration retained the contentious 18% tax rate.

Nonetheless, the journey continued, and in September, the bill was approved by Brazil’s Chamber of Deputies, signifying a significant step towards legalization.

Adding to the regulatory framework, Brazil’s ministry of finance recently outlined conditions for operating sports betting in the country. Among these requirements, operators must establish a subsidiary in Brazil to secure a license.

As the industry closely monitors these developments, it’s evident that the journey is far from over. The potential impact of this vote reverberates throughout Brazil’s gambling landscape, with a significant focus on achieving a zero fiscal deficit in 2024.

Industry experts and insiders have been vocal throughout this journey, with varying opinions on each twist and turn. The industry’s collective gaze remains fixed on the outcome of this historic vote, poised to reshape the future of gambling in Brazil.