MAR 26 DE NOVIEMBRE DE 2024 - 03:44hs.
Angelo Coronel is the rapporteur

Sports betting bill to undergo changes in Senate, is expected to be voted on in early November

The Bill that will tax online betting companies, whether related to sports or not, as well as the winnings of bettors, will begin to be analyzed by the senators starting this week, after Senator Angelo Coronel was appointed as the rapporteur of the proposal. It is anticipated that the text will be voted on by the first week of November, when the proposal's urgency period expires. This Tuesday (17), it is scheduled to be discussed in the Committee on Economic Affairs.

Appointed as the rapporteur for the issue, Senator Angelo Coronel (PSD-BA) has assured that there will be changes to the text that came from the Chamber of Deputies but has not yet provided details on what those changes will be. Consequently, the proposal will return for analysis by the deputies.

"I was appointed as the rapporteur before the holiday. We should only release it for voting after October 24th. I want to hear from everyone, the companies, the government, to do something democratic. I will talk to the Ministry of Finance on Tuesday," said Coronel to O Globo.

Uncertainty about revenue management

The resumption of the bill's processing comes amid uncertainty regarding which government ministry will have greater control over the taxation revenue from bets. The Ministry of Finance presented the Bill for the taxation of betting companies in July to the Chamber of Deputies, outlining the creation of the National Secretariat of Bets and Prizes, with 65 positions.

The secretariat would be responsible for authorizing and regulating the betting companies that operate or will operate in Brazil, as well as controlling the distribution of tax revenue to other executive ministries or external agents.

The text approved by the deputies on September 13th provides for the Ministry of Finance to control all stages of supervision of betting companies and the funds derived from bets. The Bill even states that the Ministry of Finance would be responsible for regulating the advertising of companies, which would have specific rules.

Responsible for collection

On the same day, a ceremony at the Palácio do Planalto officially appointed the current Minister of Sports, André Fufuca, to the position. The federal deputy, on leave, is a member of the Progressive Party (PP) and represents a part of the Centrão coalition in the Ministries. Fufuca's appointment coincided with a growing uncertainty within the government about who would be responsible for the billions of reais.

Congressional leaders told O Globo that there is a possibility that the Ministry of Sports will be responsible for post-revenue matters, which includes the distribution of funds collected, oversight, and the regulation of advertising pieces.

The tax rate imposed on companies will be 18% on their revenue and will be distributed as follows, according to the Chamber of Deputies' text:

  • 2% for Social Security;
     
  • 1.82% for the Ministry of Education;
     
  • 6.63% for sports, with 4% for the Ministry of Sports and the rest for sports federations, excluding the Brazilian Football Confederation (CBF);
     
  • 5% for tourism, with 4% for the Ministry of Tourism and 1% for Embratur (Brazilian Tourist Board);
     
  • 2.55% for the National Public Security Fund.
     

Source: GMB / O Globo