The vote on the bill (PL 3626/2023) which provides for the regulation of bets, also known as fixed-odd sports betting, was postponed.
The proposal also taxes other betting companies, which, according to the opposition, would pave the way for the release of so-called online casinos without supervision.
Those in favor of the proposal point out that the measure does not create new betting modalities, it merely regulates a 2018 law.
According to Agência Senado, a new date for voting will be defined by the President of the House, Rodrigo Pacheco, when he returns from his trip to Dubai to participate in the 2023 United Nations Conference on Climate Change (COP 28).
Favorable report reading
Before the session was officially postponed, rapporteur Angelo Coronel concluded reading his favorable opinion on the betting regulation project. Furthermore, Coronel stated that several forms of online games already operate in the country.
“We are not creating any new type of gambling. PL 3,626/2023, initiated by the Executive Branch, regulates fixed bet games, legal in Brazil since Law 13,756, of December 12, 2018”, said the rapporteur.
Plenary Amendments
The rapporteur accepted some of the Plenary amendments. Two of them equate the tax treatment of Fantasy Sport prizes to that guaranteed to earnings from sports betting.
Fantasy Sport is a type of game in which the bettor manages sports teams virtually, but “casting” real athletes.
The Federal Government estimates that the measure will raise R$2 billion in 2024, but could reach R$10 billion per year, according to the rapporteur’s calculations.
The funds will help the government increase revenue and meet the goal of closing the fiscal deficit.
Subsequently, senators Eduardo Girão and Magno Malta (PL-ES) presented the request to postpone the vote, which was accepted by senator Veneziano Vital do Rêgo (MDB-PB). He presided over the session in place of Rodrigo Pacheco.
Rules of the betting regulation project
According to the bill, the fixed-odd betting lottery is a betting system that includes virtual online gaming events and real sports-themed events.
In this modality, the bettor will win if they match any condition of the game or the final result of the match.
Rapporteur at the CAE and the Plenary, Angelo Coronel reduced the tax charged on the revenue of betting companies to 12%. The text approved by the Chamber provided for a rate of 18%.
The text also obliges so-called foreign bets to have at least 20% of the capital in the hands of a Brazilian company. The project establishes an initial grant to authorize the sites to operate legally, of R$30 million, valid for five years.
The bettor will have to pay Income Tax on the winnings. Taxation will occur for prizes starting at R$2,112, and will have a rate of 15% on the annual prize.
