Brazil’s sports betting measure recieves over 200 revisions
Over 240 amendments have been submitted to Brazil’s congress revising the provisions in the government’s emergency measure regarding sports betting.
Numerous lawmakers across the world’s sixth most populous nation have brought a diverse and wide-ranging set of amendments that would see a significant overhaul of the landscape that has initially been intended for the Brazilian market.
Restrictions on betting
Brazilian footballing legend turned Senator of Rio de Janeiro, Romário has brought 3 amendments to the table. One of these includes a comprehensive restriction related to betting on individual actions in football matches.
Actions such as the issuance of a yellow card or awarding a corner kick would be outlawed in order to prevent match-fixing, in the hopes of maintaining the integrity and continued relevancy of the incredibly popular sport.
In justification of his amendment, Romário gave this statement:
“The possibility of betting on such events … has been the basis for enticing athletes, since isolated events in a match do not attract as much attention and are much easier to manipulate.”
Advertising restrictions
The Rio de Janeiro Senator also raised the issue of sports betting advertising stating that Brazilian players have “involuntarily become poster-boys for these companies when they wear the shirts of these clubs with their brands on them”.
This amendment is calling for a limit on broadcast advertising pertaining to radio and television between the hours of 9 pm and 6 am. There would also be a wholesale prohibition during games including team paraphernalia or within stadiums.
This change would attempt to protect local interests by limiting the impact on sports fans and curbing the concerns of those focusing on responsible gambling practices.
Blackout period for offshore companies
Nereu Ramos Palace, Brasília, Brazil.
It was also suggested that a blackout period similar to the one implemented by the Netherlands be brought forth. This would see international online operators subject to a waiting period prior to approval of their licences.
This would be applicable to operators that began operations before 2023, with the period dictated by the length of operation in the previous grey market.
This amendment proposes that operators that have been active since 2019 forgoing taxation, would have to wait 12 months from when the provisional measure is passed into law to be granted a licence.
This time period would be reduced to just 3 months for any company that began operations in 2023.
Tax rate reduction
The immediate reaction to the proposed 18 per cent headline tax was met with both frustration and discomfort, with many calling for this to be altered immediately in light of many fears of market withdrawal.
It is unsurprising that numerous lawmakers have devised amendments to tackle this specific issue, including Deputy Newton Cardoso, a noteworthy supporter of expanded gambling.
Cardoso proposes a reduction to an 11 per cent tax rate, with additional suggestions to adjustment in the way player winnings and business taxes are applied to fixed-odds sports betting.
Taxation misgivings
A topic that was significantly discussed by the Brazilian Institute of Responsible Gaming (IBJR) was that the 18 per cent tax rate was framed in such a way to suggest that it was similar to that of taxation in the United Kingdom, a key reference for gaming legislation on the international stage.
In a statement that referenced UK operators such as Flutter and Bet365 read:
“This version of the facts generated a certain embarrassment, since many of these companies, some of which are publicly traded, operate in England and know that this is not true.”
The President of the IBJR, Andre Gelfi also added:
“The Brazilian tax burden will be at least 350 per cent higher than the English one in the way it was presented.”
Congressional approval
Under parliamentary guidelines, the Brazilian Congress has 120 days to review and amend the initial provisional measure for approval which began after Luiz Inácio Lula da Silva signed it on July 25.
Alternatively, the Chamber of Deputies has also offered an option to pass a separate sports betting legalisation bill which was introduced just last week, which will be considered separately from the provisional measure.
This leaves the very real possibility of allowing the provisional measure to expire without approval subsequent to the 120-day review.
SiGMA Balkans/CIS
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