The Brazilian Senate postponed a vote on a much-anticipated sports betting and iGaming bill – again.
A renewed effort to pass sports betting and iGaming legislation in Brazil kicked off in March. It seemed a perfect solution to the country’s revenue needs, while cracking down on illegal gambling. That said, the proposed legislation is having problems crossing the finish line.
Bill PL 3626/2023 was on the Brazilian Senate’s agenda for Wednesday. But on Tuesday, the bill was punted until Dec. 12. Some Senate members are still in Dubai for the United Nations’ COP28 Conference. Their absence was the rationale for the delay. More likely, however, it was yet another stalling tactic by Brazil’s anti-gambling caucus.
With only a couple of weeks left before the holiday recess, Brazil risks missing the window to pass sports betting and iGaming legislation this year. More importantly, it will -- at a minimum -- delay the dozens of companies lined up to pay a fee of BRL30 million (US$6.1 million) for a five-year license.
Currently, more than 130 companies have filed paperwork to secure a license, although not all of them will be approved. On top of license fees, however, the country is poised to potentially receive billions in taxes. The proposed tax rate on gross gaming revenue (GGR) is 12 percent, recently lowered from 18 percent. Meanwhile, the proposed tax rate on winnings is 15 percent, recently lowered from 30 percent. Of course, the country will receive nothing until the legislation passes.
Brazil Favored for Copa America 2024
The timing of this latest delay coincides with the release of the initial odds for next year’s Copa America. The 16-team event, featuring the top football talent from North and South America, kicks off in June.
Of the 14 teams named so far, Brazil is one of the favorites (+200), just behind Argentina (+150). The matches will be played at 14 American host cities. Unfortunately for local fans, the U.S. team is a bit of a longshot at +1,600. But at least some American USMNT fans will be able to support their team with a legal sports bet. Brazil’s fans are waiting – yet again – to find out if they’ll have a regulated sports betting option come June.
