Brazil’s Senate Plenary on Wednesday (17 December) rejected an attempt to fast-track stalled legislation that would authorise the operation of casinos, but wasted no time in approving a bill to alter sports betting taxes.

The casino bill also covers bingo halls, jogo do bicho, and betting on horse races. By a vote of 36 to 28, senators declined an urgent request to bring Bill PL 2.234/2022 directly to a final vote, meaning the proposal will continue under the normal legislative process.

The announcement that the Senate would consider whether to accelerate the bill was made at the opening of the final deliberative session of the year by Senate President Davi Alcolumbre.

The bill had already passed the Chamber of Deputies and carries a favorable report from Senator Iraja of the PSD party, who incorporated amendments and technical adjustments during Senate review.

Despite this, opposition lawmakers, particularly from the evangelical caucus, argued that expanding legalised gambling could exacerbate gambling addiction and facilitate crimes such as money laundering and other illicit activities.

PL 2.234/2022 has been under Senate consideration since 2022 and was approved by the Constitution and Justice Commission in June 2024. Its origins date back to 1991, when it was first introduced in the Chamber of Deputies.

With the rejection of the urgency request, the onus remains on Senate leadership to schedule a full debate and vote at a later stage.

Betting tax increase makes the cut

Also yesterday, the Senate approved a separate measure that directly affects the betting sector.

Lawmakers voted 62 to 6 in favor of Bill PLP 128/2025, which reduces federal tax incentives across multiple sectors while increasing taxation on online sports betting operators.

Both are accomplished by the same action. The 10% reduction on incentives means betting operators will face a higher tax burden as part of a broader effort to reassess and scale back federal tax benefits.

The government argues that such incentives must be regularly reviewed to ensure transparency and fiscal responsibility.

The rapporteur, Sen. Randolfe Rodrigues, emphasised that the measure seeks to improve oversight of tax expenditures and address distortions arising from insufficient evaluation of incentives.

While the bill applies reductions to a wide range of federal taxes and regimes, the betting sector is explicitly included among those subject to increased taxation.

The changes form part of a broader adjustment of fiscal policy aimed at strengthening public finances.

The bill now goes to Brazil’s President for final approval.

Source

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