Senate approves regulation of sports betting

The Senate approved this Tuesday (12) the project that regulates and institutes the taxation of fixed-odd sports bets, known as bets. PL 3,626/2023 was presented by the federal government with the estimate of raising R$2 billion for public coffers. The text approved by the senators was the substitute for the rapporteur, senator Angelo Coronel (PSD-BA), presented at the Economic Affairs Committee (CAE).

The vote in the plenary was symbolic. The proposal will return to the Chamber of Deputies for analysis after undergoing changes in the Senate. The senators approved two highlights to the text. The first amendment, authored by senator Carlos Portinho, excludes the possibility of betting on virtual online gaming events. The second amendment, presented by senator Tereza Cristina (PP-MS), prohibits the installation of equipment or other betting devices in physical commercial establishments.

The CAE approved the report on the matter on November 22nd. The rapporteur estimates that the revenue could reach up to R$10 billion. He established that the exploration of the activity will depend on authorization from the Ministry of Finance, which will specify the rules for modalities (virtual and/or physical) for the operator to operate.

The project is of interest to the government, as the amounts raised will help the government meet the fiscal target of zero deficit scheduled for 2024. The proposal should have been voted on last month, however, after an agreement was reached, it was removed from the agenda. Senator Eduardo Girão (Novo-CE) and other opposition parliamentarians criticized the text and warned of the health risks due to the encouragement of gambling addiction.

During the discussion of the text, the leader of the opposition in the Senate, Carlos Portinho (PL-RJ), criticized the project and pointed out that the release of casinos and the use of physical gaming machines, even if in an authorized establishment, puts the “public security”. He defended that virtual games should also be removed.

Girão pointed out that the proposal opens a gap for the installation of machines in various establishments such as markets and pharmacies. “We can carry out taxation as long as restrictions are put in place to prevent addiction,” said Girão.

Although the vote was symbolic, the senators voted against the project: Flávio Bolsonaro (PL-RJ), Sergio Moro (Novo-PR), Damares Alves (Republicanos-DF), Marcos Pontes (PL-SP), Eliziane Gama (PSD-MA), Rogério Marinho (PL-RN), Marcos Rogério (PL-RO), Esperidião Amin (PP-SC), Carlos Viana (Podemos-MG), Cleitinho (Republicanos-MG), Flávio Arns (PSB -PR), Hamilton Mourão (Republicanos-RS), Eduardo Girão (Novo-CE), Zequinha Marinho (Podemos-PA), Izalci Lucas (PSDB-DF), Magno Malta (PL-ES) and Wilder Morais (PL-GO ).

The PL conditions authorization for sites that want to operate bets on the payment of a fixed amount of R$30 million as consideration for the grant. During the vote at the CAE, senators reduced corporate taxation from 18% to 12%. The rate will be applied to Gross Gaming Revenue (GGR), that is, to gross revenue minus prizes paid to bettors. Furthermore, the rapporteur also reduced the Income Tax charge that bettors will pay on prizes greater than R$2,112 from 30% to 15%.