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ANJL launches campaign to overturn veto on online gambling bill

By - 15 April 2024

The National Association of Games and Lotteries (ANJL) has launched a campaign to convince congressmen, senators, and the federal government to overturn a partial veto by President Luiz Inácio Lula da Silva to the sports betting bill that changed the taxation of bettors’ winnings.

ANJL has defended the resumption of the original text of the proposal stating via social media that:

“We are entering a decisive period for the future of the sports betting and online gaming market in Brazil.

“In the coming days, the National Congress will decide on the Executive’s vetoes to paragraphs of article 31 of Law 14,790. #ANJL, concerned about the effectiveness of Regulation and aware of the importance of lifting the vetoes, is launching a campaign to sensitize the executive and legislative branches on the issue.

“After years of waiting for Regulation, it is important at this time for us to come together to prevent setbacks. #DIGANÃOAOVETO [#SAYNOTOVETO].  #SEUVOTOMUDAOJOGO. [#YOURVOTECANCHANGE THEGAME].”

Via its website the ANJL called on operators and other potential stakeholders to action.

“Before us is a watershed moment for the national sports betting and online gaming industry. Law 14,790, a promise of renewal and economic justice, hangs by a thread in the face of presidential vetoes on Article 31. This is an emergency call – legalized industry, the well-being of our citizens and the legal order itself cry out for intervention.

“Brazil is on the threshold of a revolutionary era for sports betting and online gaming. Law 14,790 opened the door to a prosperous and fair market, but presidential vetoes on Article 31 threaten to leave us in the dark, bringing harmful consequences for our economy, for bettors and for the integrity of our legal system,” the ANJL said.

Brazil’s online sports betting law was sanctioned and published in the Official Gazette of the Union on December 30, 2023, with vetoes on certain parts of the text. The sections vetoed by the president will need to be re-evaluated by lawmakers, who may choose to restore the deleted parts.

The original bill provided that prizes up to BRL 2,112 (the limit of the lowest Personal Income Tax bracket) would be exempt from taxation but this was vetoed by the President. The change was made so that the Federal Government would not promote “Income Tax taxation different from that applied in other lottery modalities, thus establishing a tax distinction without plausible justification.”

Congress has the opportunity to review and decide whether to uphold or override the vetoes. In order to override them, Congress needs a vote of the absolute majority of its members – two-thirds majority in both the Chamber of Deputies and the Federal Senate.

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