This week, the Brazilian Senate is preparing for a crucial vote this Tuesday, 21st. On the agenda, bill 3,626 of 2023, which proposes to regulate bookmakers. This measure aims to establish clear standards for the operation and taxation of the sector, a significant step for the betting market in Brazil.
Angelo Coronel, project rapporteur at the Economic Affairs Committee (CAE), is engaged in dialogues with political leaders. Its objective is to ensure that the project moves forward without major changes or vetoes.
The strategy includes conversations with the president of the Chamber, Arthur Lira and the project’s rapporteur at the House, Adolfo Viana, ensuring a balanced text. Coronel told Radar: “I’m talking to Arthur (Lira) and Adolfo (Viana) to write a rounded text.”
Taxation of bettors, advertising and encouragement of sport
An important decision by Coronel was not to ban the advertising of betting in stadiums, a divergence with the Senate Sports Committee.
Furthermore, he proposes allocating a portion of betting revenue to encourage sports in states and municipalities, a measure that could significantly benefit the local sports sector.
The rapporteur is also focused on the taxation of bettors’ winnings. He seeks a solution that avoids migration to the underground market, maintaining fiscal balance.
Coronel highlighted the complexity of this issue: “If you tax players’ earnings in Income Tax, you will throw them underground. If you do that, I don’t see how you can block the border on the internet so Brazilian players can’t go and play in the United States or elsewhere.”
The role of sports betting in the economy
The regulation of online sports betting is seen as key to increasing federal revenue. Minister Fernando Haddad sees this measure as a way to achieve fiscal goals, including the elimination of the primary deficit.
The approval of this project could open the way for a new market, bringing international companies and keeping Brazilian players engaged within the country.
Expectations and the future of the sports betting sector
In Coronel‘s opinion, future adjustments will be necessary as betting is licensed and the sector grows. “No one can predict how much the revenue will be. It’s time to do something, approve it, bring companies from all over the world here and leave Brazilian players here,” he stated.
