The approval of Bill 442 by the Chamber was an important (first) step towards opening up the Brazilian gambling market.
It was very positive that fixed-odds sports betting was not affected and that they gave up on the idea of state-level online licenses. However, there are still many issues to be addressed during the Senate discussions.
• Art. 45 – Sharing of revenue between bingos/casinos and game developers – the law must not impose commercial terms;
• Art. 66 – The cash deposit, insurance and bank guarantee must be used as guarantees not only for the animal game, but also for other modalities;
• Art. 72 – There is a minimum payout of 80% for fixed odds games, which should not exist;
• Art. 73 – Grants unrestricted access to bingos and casinos, not allowing to ban or expel problem players;
• Art. 80 – Prohibition of bonuses – must be suppressed, as bonuses are essential for marketing and competition;
• Art. 100 – The defined inspection fee is excessive for online games and casinos (US$ 60 thousand and US$ 120 thousand) each quarter;
• Art. 102 – Social Contribution of 17% of the GGR, without any additional tax is unconstitutional. Federal law cannot grant exemption from the Municipal Services Tax (varies from 2% to 5%);
• Art. 109 – Awards above R$10 thousand are subject to a 10% withholding tax. There is a 24-hour window to verify earnings and tax them. It should only be taxed on withdrawal as the 24h session does not work for online games and casinos.
It is still unclear how long it will take to pass the Senate. It remains to be seen who will be appointed as the bill’s rapporteur and how the president of the Senate will deal with the matter. If both are in favor, it can be voted on in the first semester, before the election.
