Check out the sports betting PM published today
Check out the sports betting PM published today

The government published this Tuesday, July 25, the PM for sports betting in the Official Gazette – which promotes the regulation of the segment in Brazil.

The new norms are already in effect, but will still be analyzed by the National Congress within a period of up to 120 days.

Brazil now has an immense window of opportunity to obtain fundamental resources that will help different areas of society.

According to projections by the Ministry of Finance, the regulation could generate revenue of up to BRL 2 billion for the government in 2024.

For subsequent years, estimates vary between R$ 6 billion and R$ 12 billion.

Now the national market has a measure that establishes rules for the creation of a sustainable environment and that further encourages the growth of a market with great potential in the country.

Check out the sports betting PM in its entirety

PROVISIONAL MEASURE No. 1,182, OF JULY 24, 2023

Amends Law No. 13,756, of December 12, 2018, to regulate the operation of the fixed-quota lottery by the Union.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution conferred on him by art. 62 of the Constitution, adopts the following Provisional Measure, with the force of law:

Art. 1st Law No. 13,756, of December 12, 2018, becomes effective with the following amendments:

“Art. 17. ……………………………………………………………………………………………….

I – ………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………..

i) 22% (twenty-two percent) for football sports organizations in return for the use of their names, brands, emblems, anthems or symbols for the dissemination and execution of the specific prediction contest;

……………………………………………………………………………………………………………………

II – ………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

i) 22% (twenty-two percent) for football sports organizations in return for the use of their names, brands, emblems, anthems or symbols for the dissemination and execution of the specific prediction contest;

………………………………………………………………………………………………………….” (NR)

“Art. 20. …………………………………………………………………………………………….

…………………………………………………………………………………………………………………..

V – 1.5% (one and five tenths of a percent) for football sports organizations in return for the use of their denominations, brands, emblems, anthems, symbols and the like for the dissemination and execution of Lotex;

………………………………………………………………………………………………………….” (NR)

“Art. 22. …………………………………………………………………………………………….

…………………………………………………………………………………………………………………..

VIII – football sports organizations in exchange for the use of their names, brands, emblems, anthems or symbols for publicizing and executing the specific prediction contest and Lotex;

………………………………………………………………………………………………………….” (NR)

“Art. 23. …………………………………………………………………………………………….

…………………………………………………………………………………………………………………..

§ 10. The regulations referred to in the caput will be previously submitted to the National Sports Council and approved by act of the Minister of State for Sports, and must, respecting the social objectives of each beneficiary entity:

I – discipline, in a clear and objective manner, the types of programs and projects that may be funded with the funds received, prohibiting the discretionary funding of activities whose objectives differ from those provided for in the caput; It is

II – establish goals, indicators and expected results from the application of funds received.” (NR)

“Art. 27. The authorization fee dealt with in article 50 of Provisional Measure No. 2.158-35, of August 24, 2001, will be monetarily updated by act of the Minister of State for Finance, at intervals of not less than one year.

Single paragraph. The update value will not exceed the variation of the official inflation index calculated in the period since the last correction.” (NR)

“Art. 29. A lottery modality is created, in the form of a public service, called a fixed quota bet, whose commercial exploitation will take place in the national territory.

……………………………………………………………………………………………………………………..

§ 2 The fixed-quota lottery will be granted, permitted or authorized, on a onerous basis, by the Ministry of Finance and will be operated exclusively in a competitive environment, with no limit on the number of grants, with the possibility of commercialization in any commercial distribution channels, physical and virtual, subject to the regulations of the Ministry of Finance.

……………………………………………………………………………………………………………………..

§ 4 National or foreign legal entities, duly established in the national territory and that meet the requirements contained in the regulations of the Ministry of Finance, may request authorization to operate fixed-quota lotteries.

§ 5 The Ministry of Finance may, in the exercise of inspection activities, request technical, operational, economic-financial and accounting information from regulated agents, data, documents, certificates, certificates and reports related to the activities carried out, and guarantee the legal secrecy and protection of personal data of the information received, if necessary.

§ 6 Refusal, omission, falsehood or unjustified delay in providing information or documents required pursuant to the provisions of § 5 subject the offender to a daily fine of R$ 10,000.00 (ten thousand reais), which may be increased by up to 20 (twenty) times, if necessary, to ensure its effectiveness.” (NR)

“Art. 29-A. For the purposes of the provisions of this Law, it is considered:

I – real sports-themed events – event, competition or act that includes sports competitions, tournaments, games or evidence with human interaction, individual or collective, excluding those that exclusively involve the participation of minors under eighteen years of age, whose result is unknown at the time of the bet and that are promoted or organized:

a) in accordance with the rules established by the national sports administration organization, as provided for in Law No. 14,597, of June 14, 2023 – General Sports Law, or by its affiliated organizations; or

b) by sports administration organizations headquartered outside the country.

II – gambler – natural person who bets on a virtual channel or buys a ticket in printed form on a physical channel;

III – virtual bet – the one made directly by the bettor in an electronic channel, before or during the occurrence of the real event object of the bet;

IV – physical bet – the one made in person by purchasing a ticket in printed form, before or during the occurrence of the actual event object of the bet;

V – fixed odds – multiplication factor of the bet amount that defines the amount to be received by the bettor, in case of a prize, for each unit of national currency wagered; It is

VI – operating agent – legal entity with a grant from the Ministry of Finance to operate fixed-quota betting lotteries in physical and virtual means.” (NR)

“Art. 30. ……………………………………………………………………………………………….

……………………………………………………………………………………………………………………..

V – the payment of income tax levied on the award; It is

VI – the payment of contribution to social security.

§ 1-A On the proceeds from the collection after deducting the amounts referred to in items III and V of the caput, the payment of contribution to social security, referred to in item VI of the caput, at the rate of 10% (ten percent), and the destinations indicated below:

……………………………………………………………………………………………………………………..

III – 1.63% (one and sixty-three hundredths percent) to entities of the National Sports System, subject to the provisions of art. 11 of Law No. 14,597, of June 14, 2023, and Brazilian athletes or those linked to sports organizations based in the Country, in return for the use of their denominations, their sports nicknames, their images, their brands, their emblems, their anthems, their symbols and the like for the dissemination and execution of the fixed quota betting lottery;

IV – 82% (eighty-two percent), at the most, to cover the costs and maintenance of the operator of the fixed-quota lottery; It is

V – 3% (three percent) to the Ministry of Sports.

……………………………………………………………………………………………………………………..

§ 1º-C The allocation to the Ministry of Sport referred to in item V of § 1º-A will be valid until July 24, 2028.

§ 1º-D After the period referred to in § 1º-C, the resources must be collected from the National Treasury, and may be freely used by the Union.

……………………………………………………………………………………………………………………..

§ 6 The Ministry of Finance will regulate the form and process by which authorizations will be granted so that all agents operating the lottery modality of fixed-quota bets make use of:

I – the image, name or sports nickname and other intellectual property rights of the athletes; It is

II – denominations, brands, emblems, anthems, symbols and the like of sports organizations.

§ 7 The allocation referred to in item III of § 1-A will be reversed, as established in a regulation of the Ministry of Finance in conjunction with the Ministry of Sports:

I – entities of the National Sports System and Brazilian athletes or those linked to sports organizations based in the country, in cases where their name, nickname, image and other intellectual property rights are expressly the object of a bet; or

II – to the national organization for the administration of the sport the event is about, when the participants are not part of the National Sports System.

§ 8 The transfers mentioned in items I, II, III and V of § 1-A shall be calculated and collected by the operating agents, on a monthly basis, in the manner established by regulation of the Ministry of Finance.

§ 9 The contribution referred to in item VI of the caput will be calculated and collected by the operating agents, on a monthly basis, in the manner established by the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance.” (NR)

“Art. 33. The communication, publicity and marketing actions of the fixed quota lottery shall comply with the regulations of the Ministry of Finance, encouraging self-regulation.

§ 1 The operator of the fixed-quota lottery shall promote informative actions to raise awareness among players and prevent pathological gambling disorder, through the elaboration of codes of conduct and the dissemination of good practices, as established in regulations of the Ministry of Finance.

§ 2 The National Council for Advertising Self-Regulation – CONAR may establish additional restrictions and guidelines to the regulations of the Ministry of Finance and issue specific recommendations for communication, advertising and marketing actions for the fixed-quota lottery.” (NR)

“Art. 33-A. Companies providing fixed-quota betting lottery activities related to real sports-themed events, and their subsidiaries and controlling companies, may not acquire, license or finance the acquisition of rights to sports events held in the country for broadcast, broadcast, transmission, retransmission, reproduction, distribution, availability or any form of display of their sounds and images, by any means or process.” (NR)

“Art. 33-B. It is forbidden, in the national territory, to carry out publicity and commercial advertisement of electronic sites and of legal or natural persons that offer or have as their object the exploitation of the lottery of fixed quota bets without the grant referred to in art. 29.

§ 1 The companies that promote publicity or advertising, after communication from the Ministry of Finance, will proceed with the exclusion of irregular disclosures and campaigns, in accordance with the provisions of the caput.

§ 2 The companies providing internet connection and internet applications, after administrative notification from the Ministry of Finance, will proceed with the due blocking of electronic sites or the exclusion of applications that offer the lottery of fixed quota bets without the grant referred to in art. 29.

§ 3 The sports administration entities shall prohibit, in their competition regulations, sports organizations and athletes from advertising the names and brands of companies that offer or operate fixed-quota lottery bets, in all their marketing properties that may be the subject of an agreement on the placement of brands, without the grant referred to in art. 29.

§ 4 The Central Bank of Brazil, pursuant to the provisions of art. 9 of Law No. 12,865, of October 9, 2013, will govern payment arrangements in order to prevent the occurrence of payments whose purpose is to place fixed odds bets by unauthorized operators.

§ 5 The prohibition provided for in the caput will come into effect within a period to be established by the Ministry of Finance.” (NR)

“Art. 33-C. The partner or controlling shareholder of a fixed-quota lottery operator, individual or part of a control agreement, may not hold direct or indirect participation in Sociedade Anônima do Futebol or in a professional sports organization, nor act as manager of a Brazilian sports team.” (NR)

“Art. 33-D. The operating agent will adopt security and integrity mechanisms in carrying out the fixed odds lottery, observing the provisions of the Ministry of Finance regulations and Law No. 13,709, of August 14, 2018.

§ 1 The sporting events object of fixed odds betting will have actions to mitigate match-fixing and corruption in actual sporting-themed events, by the operating agent, in compliance with the provisions of art. 177 of Law No. 14,597, of June 14, 2023, and in a normative act issued by the Ministry of Finance.

§ 2 The operating agent will be part of a national or international body for monitoring sports integrity.

§ 3 The Ministry of Finance may, in the exercise of supervisory activity, determine the suspension or prohibition, to all operating agents, of betting on intercurrent or specific events, occurring during the test or the match, other than the specific prognosis of the final result.

§ 4 The operating agent shall report suspicious events of manipulation to the Ministry of Finance within a period of five working days, counted from the moment in which the operating agent becomes aware of the suspicious event.” (NR)

“Art. 34. Bettors lose the right to receive their prizes or request refunds if payment is not claimed within a period of ninety days, counting from the date of the first publication of the result of the real event object of the bet.

§ 1 The amounts of unclaimed prizes will revert to Fies until July 24, 2028, subject to the financial and budgetary schedule of the federal Executive Branch.

§ 2 After the period mentioned in § 1, the resources will be collected from the National Treasury and may be freely used by the Union.” (NR)

“Art. 34-A. It is exclusive to institutions authorized to operate by the Central Bank of Brazil to offer transactional accounts that allow the bettor to carry out payment transactions for fixed-quota bets, and to receive any prizes.” (NR)

“Art. 35-A. Infringements will be investigated through a sanctioning administrative process that will obey, among others, the principles of legality, purpose, motivation, reasonableness, proportionality, morality, full defense, contradictory, legal certainty and efficiency.” (NR)

“Art. 35-B. In the application of the penalties established in this Chapter, the following shall be considered:

I – the seriousness and duration of the infraction;

II – the offender’s primacy and good faith;

III – the degree of injury or the danger of injury to the national economy, sport, consumers, or third parties;

IV – the advantage gained by the offender;

V – the economic capacity of the offender;

VI – the value of the transaction; It is

VII – recurrence.

§ 1 The offender who has not had a final administrative conviction for violating the legislation or regulations applicable to the operation of lotteries is considered a primary offender.

§ 2 Recidivism is verified when the offender commits a new violation of the same nature within the period of three years subsequent to the date of the final and unappealable administrative condemnation decision of the previous violation.

§ 3 In cases of recidivism, the sanction of a fine will be applied, separately or cumulatively with other sanctions, and its value will be doubled.” (NR)

“Art. 35-C. It constitutes an administrative offense punishable in accordance with the provisions of this Law, without prejudice to the application of other penalties provided for in the legislation:

I – operate fixed-quota betting lotteries without prior authorization from the Ministry of Finance;

II – carry out operations or activities that are prohibited, unauthorized or in disagreement with the granted grant;

III – hinder the supervision of the competent administrative body;

IV – fail to provide the competent administrative body with documents, data or information whose remittance is imposed by legal or regulatory rules;

V – provide the competent administrative body with documents, data or information that are incorrect or in disagreement with the terms and conditions established in legal or regulatory rules;

VI – to disseminate publicity and commercial propaganda of unauthorized fixed-quota lottery operators, as provided for in art. 29;

VII – to fail to comply with legal and regulatory norms whose compliance is the responsibility of the competent administrative body to supervise; It is

VIII – carry out, encourage, allow or, in any way, contribute or contribute to practices that undermine sporting integrity, the uncertainty of the sporting result, the transparency of the rules applicable to the sporting event, equality between competitors, and any other form of fraud or undue interference capable of affecting the fairness or healthiness of the conduct associated with the proper performance of the sporting activity.

Single paragraph. It constitutes an embarrassment for inspection to deny or hinder access to data and information systems and not display or provide documents, papers and bookkeeping books, including electronically, within the terms, forms and conditions established by the competent administrative body in the exercise of its inspection activity.” (NR)

“Art. 35-D. The occurrence of the infractions provided for in art. 35-C subjects the natural or legal person responsible to the following administrative sanctions:

I – warning;

II – in the case of a legal entity, a fine in the amount of 0.1% (one tenth percent) to 20% (twenty percent) on the proceeds from the collection after deducting the amounts referred to in items III to VI of the caput of art. 30, relating to the last fiscal year prior to the initiation of the sanctioning administrative process, which will never be less than the advantage gained, when estimating it is possible, nor greater than R$ 2,000,000,000.00 (two billion reais), per infraction, subject to the provisions of article 35-B of this Law;

III – in the case of other individuals or legal entities governed by public or private law, and any associations of entities or persons constituted in fact or in law, even if temporarily, with or without legal personality, that do not carry out a business activity, and it is not possible to use the criterion of the product of the collection, the fine will be between R$ 50,000.00 (fifty thousand reais) and R$ 2,000,000,000.00 (two billion reais) per infraction, observing the provisions of art. 35-B of this Law;

IV – partial or total suspension of activities, for a period of up to one hundred and eighty days;

V – revocation of authorization, termination of permission or concession, cancellation of registration, disqualification, or analogous release act;

VI – prohibition of obtaining ownership of a new authorization, grant, permission, accreditation, registration or similar act of release for a maximum period of ten years;

VII – prohibition to carry out certain activities or types of operation, for a maximum period of ten years;

VIII – prohibition to participate in bidding processes whose object is the concession or permission of public services, in the federal public administration, directly or indirectly, for a period of not less than five years; It is

IX – disqualification to act as a leader, administrator and to hold a position in a body provided for in the bylaws or in the articles of incorporation of a legal entity that explores any type of lottery, for a maximum period of twenty years.

§ 1 One or more natural or legal persons may be considered, individually or jointly, responsible for the same infraction.

§ 2 The sanctions provided for in items I and II of the caput fixed above BRL 200,000.00 (two hundred thousand reais) and in items V to IX of the caput will be applied by act of the Minister of Finance.

§ 3 The sanctions provided for in this article may be applied individually or cumulatively, according to the criteria established in the regulations of the Ministry of Finance, in compliance with the provisions of art. 35-B of this Law.” (NR)

“Art. 35-E. It is forbidden to participate, directly or indirectly, including through an intermediary, as a bettor, of:

I – owner, administrator, director, person with significant influence, manager or employees of the operating agent;

II – public agent with attributions directly related to the regulation, control and inspection of the activity at the federative level in whose staff he exercises his competences;

III – under eighteen years of age;

IV – person who has or may have access to computerized fixed-odds lottery systems;

V – person who has or may have any influence on the outcome of a real sports-themed event object of the fixed odds lottery, including:

a) person who holds the position of sports leader, sports coach, coach, member of the technical committee;

b) sports referee, sports referee’s assistant, or equivalent, sports entrepreneur, agent or proxy for athletes and coaches, coach or member of the coaching staff;

c) member of the management or supervisory body of the management entity of the organizer of a competition or sporting event; It is

d) participant in competitions organized by entities that are part of the National Sports System;

VI – person enrolled in the national credit protection registries; It is

VII – other cases to be established by the Ministry of Finance.

§ 1 The prohibitions provided for in items I, IV and V of the caput extend to spouses, partners and direct and collateral relatives, up to the second degree, inclusive, of persons prevented from participating, directly or indirectly, as a gambler.

§ 2 The hypothesis provided for in item II of the caput does not exclude the observance by public agents of the duties and prohibitions provided for in laws and regulations, in compliance with the provisions of Law No. 8,429, of June 2, 1992, and Law No.

“Art. 35-F. It is incumbent upon the Ministry of Finance:

I – authorize, permit and grant, standardize, regulate, supervise and supervise the operation of the fixed-quota lottery;

II – set the value of the grant for operating the fixed-quota lottery public service;

III – regulate, supervise and apply administrative sanctions, pursuant to Law No. 9,613, of 1998, in relation to the duties set forth in its art. 10 and art. 11;

IV – initiate the administrative process and apply administrative sanctions for violation of the provisions of this Law and the regulations issued by the Ministry of Finance;

V – regulate the penalties and the sanctioning administrative process provided for in this Law, in order to provide for:

a) the grading and dosimetry of the penalties;

b) the criteria for defining the value of the fine dealt with in items II and III of the caput of art. 35-D; It is

c) the rite and deadlines of the sanctioning administrative process;

VI – to prohibit, by its own act, the placing of fixed odds bets on certain events or individual actions in sports-themed events;

VII – provide for the measures that the operating agent must adopt to avoid the participation, direct or indirect, including through an intermediary person, as a bettor, of the persons indicated in art. 35-E; It is

VIII – provide for rules to preserve responsible gambling, with the possibility of limiting the amount, frequency and bet amounts per event or per bettor.

§ 1 The unit of the Ministry of Finance responsible for exercising the powers referred to in this article will seek to segregate functions, including formulation and execution attributions, in order to prevent conflicts of interest.

§ 2 The bodies and entities of the federal public administration whose performance is directly or indirectly related to lottery activities will provide the support and information requested by the Ministry of Finance for the exercise of its competences in relation to the matter.

§ 3 The Ministry of Finance may, without prejudice to the provisions of the caput, coordinate with other bodies or public or private entities to carry out activities within its competence, including with regard to information technology structures necessary for the exercise of regulation.

§ 4 The Ministry of Sport will assist the Ministry of Finance in inspection actions aimed at ensuring integrity in sport.” (NR)

Art. 2nd Item IV of the caput of art. 30 of Law No. 13,756 of 2018.

Art. 3 This Provisional Measure enters into force on the date of its publication and takes effect:

I – regarding art. 1st:

a) in the part where it amends item VI of the caput of art. 30 of Law No. 13,756, of 2018, from the first day of the fourth month following its publication; It is

b) in the part where it alters items I and VI of the caput of art. 35-C of Law No. 13,756, of 2018, from the effective date of the Ministry of Finance regulation that allows interested parties to submit an authorization request to the Ministry of Finance;

II – regarding art. 2nd, from the first day of the fourth month subsequent to its publication; It is

III – on the date of its publication, regarding the other provisions.

Brasilia, July 24, 2023; 202nd of Independence and 135th of the Republic.