By Leonardo Neri

On the agenda for last Wednesday (29), the vote on the bill that establishes rules for fixed-odds sports betting, known as “bets”, was postponed after discussions in the Senate Plenary. The date for the vote will be set by the President of the Senate, Rodrigo Pacheco.

Bill 3,626/2023 also imposes taxes on other online gambling companies, raising concerns among critics who claim that this could open the way for the creation of “virtual casinos without oversight”. On the other hand, supporters of the proposal argue that it does not introduce new forms of gambling, but merely regulates a law that has existed since 2018 (Law 13,756) and ensures the taxation of games already in operation.

Conservative government estimates point to revenues of R$2 billion in 2024 from the measure, which could reach R$10 billion annually. This revenue would help the government increase revenue and achieve the goal of eliminating the fiscal deficit.

During the session it was highlighted that “bets”, although legal, are not collecting taxes due to the lack of regulation.

There were also concerns that the proposal could result in the uncontrolled operation of betting shops, equating it to an unsupervised “online casino”. On the other hand, concerns were raised about the potential increase in gambling addiction and calls for the vote to be postponed.

The bill establishes rules for fixed-odds betting lotteries, covering virtual online gaming events and real-world sports events such as football and volleyball. The tax rate on the turnover of betting companies was reduced to 12%, compared to the 18% initially proposed by the Chamber.

In addition, the text requires that foreign bets have at least 20% of their capital controlled by Brazilian companies and establishes an initial fee of R$30 million, valid for five years, to legally authorize the operation of the sites. Bettors' winnings will be subject to income tax starting at R$2,112, with a rate of R$15% on the annual prize pool.

Amendments from the Plenary were accepted, equating the tax treatment of Fantasy Sport prizes to winnings from sports betting. Fantasy Sport is a type of game in which participants virtually manage sports teams, selecting real athletes.