Online gaming has been left in limbo as there was long-awaited progress with the Brazilian sports betting bill.
After a myriad of delays, the Senate of Brazil did approve the ‘basic text’ of Bill 3626/2023, however, the bill will be subject to further analysis.
Nonetheless, the Senate detailed it has upheld an appeal by Liberal Party Senator Carlos Portinho (RJ) to exclude online casino modalities from the legislation.
It continued a period of indecision when it came to online casinos, as the sector failed to enjoy the same progress as sports betting in the region.
Portinho, the Liberal Party leader in Brazil, has stated that the party’s stance against online casino is being upheld in the text of the Bill, which holds the primary objective to regulate fixed-odds betting.
Senate notes revealed that Portinho underlined that ‘the emphasis restores the position of the original provisional measure, which excluded casino games – which, according to him, could be dealt with in another project. He objected to the inclusion of virtual games in the text, noting that the profit margins are smaller in real games.’
In further last-minute deliberations, the Senate rejected an amendment that sought to ban betting advertising for sports teams and arenas. Furthermore, the plenary sessions dismissed an appeal by PP Senator Tereza Cristina to exclude physical betting machines from the bill.
All fiscal and tax modalities proposed by the Senate’s Economic Affairs Commission (CAE) were maintained as Brazil’s federal market will apply a 12 per cent tax on licensed operators and a 15 per cent tax on player prizes. On the income collected, 2 per cent will go to social security as “other recipients of the resources will be the areas of sport (6.63 per cent) and tourism (5 per cent).”
Licensing duties will require operators to pay BRL 30m (€5.5m) to acquire a federal license. This license will be valid for five years and will allow operators to service three brands. All businesses (foreign and domestic) are required to have a domiciled presence in Brazil, with a legal guardian.
A review of online casino modalities must be undertaken by Deputies, considering the exclusion’s impact on the government’s plans to raise income for the legislation.
Deputies face the choice of extending the Bill’s remit to cover online casino games as recommended by former rapporteur Angelo Coronel, or to maintain the text as it stands for its federal sign-off by President Lula da Silva.Additionally, Senator Jorge Kajuru (SP), who opposed the exclusion of online casino games, remarked, ‘That’s what’s going to happen. We, senators, wear the shirt of idiots for the country’.