online sports betting in Brazil remains on hold as lawmakers fail to reach agreement on legislation.
Rewritten Article:
The unexpected delay in the legalization of online sports betting in Brazil came as the Federal Senate postponed its final vote on essential enabling legislation (Bill 3,626/23). Originally slated for a vote yesterday, the ballot was called off at the last minute due to opposition towards the inclusion of language to legalize online casino games.
Wavering Vote
Senators against the bill have argued that it has undergone over a hundred amendments since its introduction to the lower Chamber of Deputies in July, but the language regarding online casino gambling was not part of the original proposal. These critics are also concerned about the lack of specifics on what types of games will be allowed and how the new vertical will be regulated.
Funding Recovery
The passage of Bill 3,626/23 is a priority for the government of Brazilian President Luiz Inacio Lula da Silva, aiming to raise approximately $2.3 billion in tax revenues from legalized online sports betting to support an economic recovery program. Despite last-minute negotiations, Senators opposed to the inclusion of online casino gambling language prevailed, leading to the postponement of the final vote.
Supporters of the bill will now have to wait for Federal Senate President Rodrigo Pacheco's return from COP28 in Dubai to schedule a new vote. However, the delay could see the bill amended further or even sent back to the Chamber of Deputies.
Contentious Tactics
Bill 3,626/23 was championed by Social Democratic Party representative Adolfo Viana during its passage through the Chamber of Deputies. Despite opposing amendments, Viana supported the inclusion of online casino games language to maximize tax revenues. One notable amendment came from footballer-turned-politician Romario de Souza Faria, advocating for the bill to focus solely on fixed-odds sports betting.
In the pre-vote review of Bill 3,626/23 on behalf of the Economic Affairs Commission (CAE), Senator Angelo Coronel agreed with Viana and Additionally recommended reducing the tax rate for online sports betting operator income from 18% to 12%. Coronel went a step further by suggesting halving the duty on player prizes to 15% to attract consumers and businesses to the new market.
While the reasons for the delay in the final vote on Bill 3,626/23 may not be clear at this moment, it is essential to monitor official government sources or recent news reports for accurate and up-to-date information.
- Unsupportive senators postponed the final vote on Bill 3,626/23, citing over a hundred amendments and concerns about the inclusion of online casino gambling language, threatening the legalization of online sports betting in Brazil.
- President Luiz Inacio Lula da Silva's government had hoped to raise approximately $2.3 billion in tax revenues from legalized online sports betting as part of an economic recovery program, and the delay may impact these ambitious plans.
- Adolfo Viana, who championed Bill 3,626/23 in the Chamber of Deputies, supported the inclusion of online casino gambling language despite opposing amendments, aiming to maximize tax revenues.
- Angelo Coronel, reviewing the bill on behalf of the Economic Affairs Commission (CAE), advocated for a lower tax rate for online sports betting operators and suggested halving the duty on player prizes to stimulate interest in the new market.
- With the Federal Senate President Rodrigo Pacheco delayed due to COP28 and potential further amendments looming, the future of the policy-and-legislation concerning sports betting in Brazil remains uncertain, influencing general news, politics, and even sports coverage.
