Amid high anticipation from the gambling industry, the Brazilian Economic Affairs Commission (CAE) had earlier this month forged a path they hoped would lead swiftly to the Senate plenary vote on the critical Bill 3,626, with the intention to regulate sports betting in the country. However, hurdles arose as more than a hundred amendments were swiftly added to the bill, causing the initially scheduled vote on November 29 to be postponed until December.
As the rescheduled date looms, sources close to the legislative developments have indicated a further delay is on the horizon. The Senate plenary’s vote has been penciled in for 2 pm local time (5 pm GMT), yet whispers grow louder that this session may be pushed back six days to December 12 due to insufficient senatorial attendance to meet the quota required for the vote to proceed. This situation, if materialized, could potentially endanger the approval of the bill, since a minimum number of senators must be present for a valid decision.
A delayed vote does not only pose issues in terms of immediate legislative progress; it can cascade into far-reaching complications. The Brazilian National Congress, comprising both the Federal Senate and the Chamber of Deputies, embarks on its recess starting December 22 and will reconvene only by February 2, 2024. Should the vote face even a week’s postponement, the Chamber of Deputies would find itself racing against time—with a mere one week and two days—to review and pass amendments brought forth by Senator Angelo Coronel, thus formalizing the bill.
The crucial nature of the timeline is emphasized by the fact that for the necessary funds to realize the bill and integrate it into the 2024 budget, the bill needs definitive approval within 2023.
Despite imminent delays, Luiz Felipe Maia, a founding partner of the Brazilian law firm Maia Yoshiyasu Advogados, remains positive about the future of sports betting regulation, asserting that its fruition is not far-fetched. According to Maia, the government’s backing significantly boosts the bill’s prospects. He elaborates that the regulation promises substantial benefits for consumers, even outmatching potential advantages for the government and sports entities.
The reasons for the vote’s suspension stem from a variety of factors. Key among them was the COP28 international event, which led to several senatorial absences. Those advocating for the bill are treading carefully, reluctant to risk an adverse outcome, whereas its opponents seem intent on obstructing its progress, aiming primarily at the exclusion of online gaming elements from the legislation.
As for the bill’s genesis and evolution, it has been anything but linear. The CAE’s endorsement last month marked a milestone as it reformed one of the bill’s most debated components—the tax rate. Initially set at an industry-opposed 18%, it was officially reduced to a more palatable 12%. An attempt to extract iGaming from the bill was also unsuccessful, with its inclusion gaining approval by the Chamber of Deputies in September.
Bill 3,636’s journey to the present form included transformations enacted as recently as July this year when President Luiz Inácio Lula da Silva legislated Provisional Measure (PM) No. 1,182. This enactment introduced sports betting measures from Law No. 13,756 of 2018 while amending tax rates and marketing restrictions. The guidelines for sports betting licensure issued in October by Brazil’s Ministry of Finance set a late November deadline for hopefuls to submit applications.
The route to legal sports betting in Brazil has been arduous and convoluted, arguably inducing some level of weariness within the industry. Yet, for those anchored in Brazil, optimism prevails as it is hoped the Senate will finally cast a favorable vote.
