Brazil: Senate Postpones Sports Betting Discussions

Brazil’s Senate has once again pushed back its decision about the future of sports betting. The country has been preparing to launch wagering on sports for some time now but the legislators continue to be indecisive.

In addition to the Senate, the Economic Affairs Commission (CAE) delayed its Tuesday meeting to Wednesday, further signifying the country’s uncertainty about greenlighting wagering on sports. This was likely caused by the multiple recent amendments to the initial sports betting bill, which envision different tax rates for sportsbooks.

The original bill planned a tax of 18% but, according to reports, the changes lowered it to 15%. Reports also say that Senator Ângelo Coronel also proposed decreasing the tax on fantasy sports from 30% to 15%.

Another major change is a measure that would require sportsbooks to sign an agreement with a Brazilian partner who would acquire at least 20% of their share capital.

The future of sports betting taxes continues to be discussed by Brazilian lawmakers, delaying the official launch of the vertical.

Brazil Is Also Discussing a Ban on Ads

In addition to discussing the future of sports betting, Brazilian lawmakers continue to mull over a possible ban on gambling advertisements, much to the dismay of industry shareholders.

The ban, which would block sponsorship deals between operators and teams, as well as gambling advertisements across stadiums, would deprive the sports sector of a major revenue stream, clubs argue.

Expressing their discontentment with the discussed ban, 33 soccer clubs wrote a letter to the Senate, hoping to convince lawmakers to abandon the measure.

In the meantime, Brazil also continues to discuss the possibility of launching online casino gaming in the country. A separate bill, which would legalize the vertical, is still on the table, seeking to bring order to Brazil’s unregulated sector.

Proponents of the regulation of online gambling argue that it would protect local consumers and generate an important stream of tax money.