Brazilian Senate rejects regulated igaming as sports betting bill approved
Bill 3,626/2023 to return to the Chamber of Deputies for approval following landmark decision
The Brazilian Senate has said no to online games of chance in Bill PL 3,626/2023 after senators gave the green light to regulated sports betting, yesterday, 12 December.
The Senate vote was originally due to take place in late November but was ultimately postponed due to concerns over igaming.
Senators Magno Malta and Eduardo Girão successfully requested to have the vote suspended, while Senator Omar Aziz said regulated igaming meant voting for “an online casino without supervision”.
Those concerns, despite the best efforts of lobby groups, have now been realised, with a provision for online gaming not included in the legislation.
While sports betting was approved by senators, an amendment to introduce regulated igaming lost by 37 votes to 27.
During the plenary session yesterday, Senator Carlos Portinho, who bought the igaming amendment to the table, was outspoken against the vertical.
He said: “It is the disgrace of the Brazilian family. It’s the casino, it’s blackjack […] the rule is manipulation. The profit of virtual gaming bookmakers is 70%.”
Despite the disappointment for operators that igaming will not be included in the bill, the Senate approval marks a landmark moment in the process to regulate the Brazilian gaming market.
The bill will now return to the Chamber of Deputies for final approval, before being sent to President Luiz Inácio Lula da Silva for his signature.
This time last year, Lula’s predecessor, the far-right populist Jair Bolsonaro, had the chance to regulate the industry but failed to approve the legislation before leaving office after his defeat.
While the 12% GGR tax rate is considered reasonable when compared with markets, other obligations to the state, a BRL30m licence fee (£4.8m) for three years and a controversial player winnings tax of 15% means the Brazilian market will certainly have its challenges.
Moreover, licensed operators having to switch off casino games would play right into the hands of black-market operators, critics of the legislation argue.
Meanwhile, senators rejected, by 36 votes to 25, a proposal that would have banned gambling sponsorship in sport.