Brazil: Chamber of Deputies approves regulation of sports betting, includes online casinos in the text

In a session that started on Thursday afternoon (21) and lasted until late at night, the Chamber of Deputies approved bill 3.626/23, which regulates sports betting. The parliamentarians again included online casinos in the proposal. 

During the discussion in the plenary, the bill was obstructed by members of the evangelical bench, against the regulation of online betting and casinos. In the face of the criticism, the president of the Chamber, Arthur Lira (PP-AL), came out in defense of the legislation.

"If we simply don't vote on regulation, will gambling cease to exist? Will people stop gambling, will bookmakers stop operating and sponsoring teams, events, and tournaments? No, we are not increasing or decreasing, we are trying to regulate and take [the sector] seriously to avoid, for example, money laundering," said Lira, according to Agencia Câmara de Noticias.

The speaker of the bill in the Chamber, Deputy Adolfo Viana (PSDB-BA), included online casinos in the text. This type of gambling had been eliminated by the senators, which triggered criticism from the sector and concern from the federal government, which saw a loss of revenue (a reduction of up to 70%).

Adolfo Viana

"We want a law that definitively establishes that these gambling sites will be supervised and taxed by the country. If we don't pass the bill, betting will continue to take place without supervision," Viana argued.

How is the text of the bill 3.626/23?

The proposal was approved by 292 votes in favor against 114 against and these are its main points:

• Corporate income tax will remain at 12% of Gross Gaming Revenues (IBG).
• Players will be taxed at 15% on prizes exceeding BRL 2,112.
• Companies must have a Brazilian shareholder with at least 20% of the capital stock as a partner.
• Subsidy of BRL 30 million (USD 6 million) for a period of up to five years, with authorization valid for a maximum of three trademarks.
• Bookmakers must adopt procedures to identify bettors, such as facial recognition.
• Advertising must include warnings to discourage gambling and about its risks.
• Gambling is prohibited for persons under 18 years of age, persons diagnosed with compulsive gambling, and persons with influence on sports platforms or events, including managers, coaches, referees, and athletes.

The text will now be sanctioned by President Luiz Inácio Lula da Silva. According to the news portal UOL, the Federal Government expects that BRL 12 billion (more than $2.4 billion) will be collected until 2024.