Brazil Again Postpones Sports Betting Vote

Several senators expressed their concerns about the complexity of Bill 3626/2023 and the low quorum that would hinder a comprehensive discussion, so Rodrigo Pacheco, the president of the Senate, agreed with their request and decided to postpone the vote again until December 12th. While the matter remains on the agenda, Pacheco assured that it will be discussed in the following week, allowing for a more inclusive and informed debate.

The low quorum can be attributed to the absence of several senators who are currently participating in COP28, the UN Conference on Climate Change, in the United Arab Emirates. The sessions have been conducted semi-in-person since last week, leading to logistical challenges in achieving the necessary attendance for a thorough deliberation.

This is not the first time the sports betting vote has faced obstacles. On the 29th of November, maneuverings by senators opposed to the matter resulted in the first postponement after the reading of the report by Senator Angelo Coronel. Senator Coronel voted in favor of the bill and did not accept the last-minute amendments proposed in the Plenary.

The urgency of the bill, imposed by the Executive Branch, mandates that it be voted on within 45 days to avoid blocking the legislative agenda. However, on November 12th, the government removed the urgency to allow for the processing of other important proposals. Unfortunately, the delay in deliberating the text in the thematic committees prevented the bill from reaching the Plenary sooner.

President Pacheco defended the remote deliberation system but acknowledged the arguments for a more physical presence during the discussion of a highly complex matter. He emphasized the significance of next week, which will be filled with numerous legislative proposals and the consideration of various authorities. Pacheco urged all senators to be present in the Plenary, highlighting the importance of their contributions to the debate.

Jaques Wagner, the government leader in the Senate, proposed voting on the main text of the bill on Wednesday, leaving the decision on the highlights for the following Tuesday. However, Pacheco deemed the original referral satisfactory for all parties involved, suggesting that the highlights could be addressed within the existing framework.

The proposal to postpone the vote was presented by Senator Flávio Arns, who expressed concerns about the bill. He believed that it would be more beneficial for Brazil if the senators were physically present during the Plenary session. Arns emphasized the significant number of highlights that needed to be thoroughly evaluated and proposed that the assessment be conducted in person, enabling a more comprehensive and meaningful discussion.

Bill 3626/2023 is one of the priorities of the Lula government, aiming to increase revenue and guarantee a zero deficit in the coming year. The government estimates a revenue range of R$1.6 billion to R$2 billion in 2024 through the regulation of sports betting. However, Senator Angelo Coronel argues that this estimation is underestimated. According to his report, the approval of the bill would generate revenue of approximately R$10 billion next year.

The Ministry of Finance confirmed that the 134 companies that expressed interest in obtaining a license for sports betting would contribute R$4.02 billion in grants alone. This figure surpasses the government’s initial estimation, demonstrating the potential economic impact of the bill.

The postponement of the sports betting vote further complicates the government’s plans, as the bill originated in the Chamber and needs to return to the deputies for consideration after being approved in the Senate. The time constraints are tight, and it is uncertain whether there will be enough time to complete this legislative process before President Lula can sanction the approved law.

The delay in passing the bill not only affects the government’s revenue projections but also creates uncertainty in the sports betting industry. Operators and stakeholders eagerly await the regulatory framework to be put in place, allowing them to enter the Brazilian market and contribute to its growth.