The legislative journey for the legalization of sports betting and igaming in Brazil is approaching a critical juncture with the Senate Plenary vote scheduled for 28 November. This pivotal decision follows the approval of the bill text by the Committee on Economic Affairs (CAE), moving the bill closer to potential ratification and creating a regulated landscape for the burgeoning Brazilian betting industry.
The bill in question, Bill 3,626/2023, has previously navigated through the Chamber of Deputies, gaining approval in September. Now, the Senate Plenary stands as one of the final hurdles before the bill can be enacted into law. If the Senate decides to alter the text, the bill will be returned to the lower chamber for further deliberation. However, should it pass without amendments, the next and almost final step would be a positive vote in the Chamber, followed by the signature of Brazil’s President Luiz Inácio Lula da Silva, which would officially launch the market.
Despite this progress, the legislative process has not been devoid of contention. Senators Eduardo Girão and Carlos Portinho have been vocal opponents, and attempts to excise igaming from the legislation were stymied during the recent session. This discussion around igaming arose after it was surprisingly included in the sports betting bill back in September, leading to a complex debate about the scope of gambling regulation in Brazil.
Senator Girão, having pushed for the session’s postponement, emphasized the gravity of the decision, expressing concerns about its potential impact on the less privileged and stressing the importance of considered legislative action rather than hasty judgment.
The journey to this legislative crossroads has been long and fraught with controversy. Brazil’s initial foray into sports betting legislation came in 2018 with the passing of Law No. 13,756. However, the regulation took firmer shape in May when the Brazilian government introduced a provisional measure (PM No. 1,182) for sports betting, which was subsequently signed into law by President da Silva in July.
This move by the government, however, was not met without criticism from the gaming industry. Critiques focused on issues such as the high tax rate on gross gaming revenue (GGR) and the restrictions placed on marketing activities—elements that stakeholders saw as potential impediments to the industry’s growth and competitiveness.
Bill 3,626/2023 emerged as a response to these concerns, offering an amendment to PM No. 1,182 and notably incorporating online casino gaming into the legislative framework. Initially, the controversial 18% tax rate was maintained, driving further industry backlash.
Further stipulations were outlined by Brazil’s Ministry of Finance in October, stating that parties interested in obtaining a sports betting license in Brazil would be required to establish a subsidiary within the country, potentially adding a layer of complexity for international operators seeking to enter the market.
The anticipation around the Senate Plenary vote is palpable, and its outcome could be a watershed moment for sports betting and igaming in Brazil. As stakeholders and observers await the Senate’s decision, iGB, in partnership with IDNow, is slated to host a special webinar that coincides with the day of the vote, offering real-time updates and insights into the unfolding situation.
As the Brazilian betting landscape stands at the threshold of change, the industry eagerly watches as legislative developments unfold, poised for a future that could reshape the economic and social fabric of gambling in Latin America’s largest nation.
