Brazil's Crucial Sports Betting Vote Faces Possible Delay
Date: 2023-12-21 Author: Dima Zakharov Categories: EVENTS
The Senate's Uphill Battle
When Brazil's Economic Affairs Commission (CAE) gave the green light to Bill 3,626 two weeks ago, many anticipated a swift Senate plenary vote. Regrettably, the process hit a snag.
Initially scheduled for November 29, the Senate plenary vote was deferred to December due to over 100 amendments being tacked onto the bill.
Present Day Dilemma
As of today, the Senate plenary's vote is slated for 2 pm local time (5 pm GMT). However, reliable sources suggest a potential six-day delay, pushing it to December 12. This delay hinges on whether the required number of senators will be present for today's vote.
Such a delay could jeopardize the bill's approval and have far-reaching consequences.
Implications of a Delay
If the vote faces yet another delay, it could have significant repercussions. The National Congress of Brazil, housing the federal senate and chamber of deputies, will go on recess on December 22, only resuming on February 2, 2024.
With a one-week delay, Brazil's chamber of deputies would have just over a week to endorse the amendments introduced by Senator Angelo Coronel and officially approve the bill. Meeting the timeline for the 2024 budget allocation would require the bill's approval in 2023.
Industry Outlook
Despite rumors of delays, Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, remains optimistic about sports betting regulation's imminent arrival.
He asserts, "I sincerely believe we are moving closer to regulation, with the government firmly supporting its approval." Maia contends that players stand to gain the most from this regulation, despite the hurdles.
The Long and Winding Road
To comprehend how we arrived at this juncture, let's backtrack. The CAE's approval of Bill 3,626 last month was significant, especially as it addressed a contentious issue—the tax rate. Initially at 18%, it was reduced to 12% in the approved version. Attempts to exclude igaming from the bill were unsuccessful.
Bill 3,626 underwent several transformations, culminating in its current form. The journey started with President Luiz Inácio Lula da Silva signing Provisional Measure (PM) No 1,182 into law in July, implementing sports betting measures outlined in Law No 13,756 from 2018. Amendments to the tax rate and marketing restrictions followed.
In October, Brazil's ministry of finance laid out the conditions for obtaining a sports betting license, requiring applicants to apply by late November.
While the road to legal sports betting in Brazil has been arduous, hopes remain high for the Senate to endorse the bill today.
