This Wednesday, the 13th, the bill that establishes the regulation of fixed-odd sports betting was approved by the Chamber of Deputies.
The project aims to redistribute revenue, impose grants, as well as introduce requirements and limitations.
Furthermore, as published in Agência Câmara de Notícias, the text includes the provisions of Provisional Measure 1182/23, which already regulated the matter, and now the PL for the regulation of sports betting will proceed for consideration in the Senate.
Check out the news about the regulation of sports betting in full below
The Chamber of Deputies approved this Wednesday (13) a bill to regulate sports betting through a fixed quota (such as “bets”), providing for a new distribution of revenue, grant payment, requirements and restrictions. The text incorporates Provisional Measure 1182/23, which regulated the topic, and will be sent to the Senate.
The approved text is a substitute of the rapporteur, deputy Adolfo Viana (PSDB-BA), for Bill 3626/23, of the Executive Branch. Instead of 10% of the revenue going to social security, as predicted by the MP, the sector will receive 2%. Other recipients of the resources will be education (1.82%), sport (6.63%) and tourism (5%).
Law 13,756/18, which created this type of lottery, provided that companies would keep 95% of gross revenue (after prizes and income tax), while the project allows 82%.
To remunerate clubs and athletes for the use of their names, brands and other symbols, betting companies must pay them compensation within 6.63%. Thus, of this total, 1.13 percentage points will be distributed to them in the form of a regulation.
With the approval in the Plenary of an amendment by Congressman Hugo Motta (Republicanos-PB), 0.5% of the amount will be directed to state Sports departments, which will have to distribute half to the municipal Sports departments in proportion to the city’s population.
Within the amount of education, 0.82% will go to early childhood schools or primary and secondary schools that have achieved targets for national assessment results. The remainder (1%) will go to public secondary technical schools.
In tourism, 1% will go to Embratur and 4% will go to the Ministry of Tourism. “Online gambling currently occurs throughout the national territory, and the project regulates the activity so that it can be taxed”, recalled the rapporteur.
Grant
As for the grant, it will be onerous, with a maximum payment of R$30 million for the authorization, to be granted to those who meet the requirements. The amount allows the use of an electronic channel (a betting app) per act of authorization and must be paid within 30 days from the authorizing act.
This authorization may, at the discretion of the Ministry of Finance, be for up to three years and will be highly personal, non-negotiable and non-transferable. If the authorized legal entity undergoes a merger or change in share control, the authorization may be reviewed through a specific administrative process, ensuring contradictory and
Virtual event
Another novelty in relation to MP is the possibility of exploring virtual online gaming events, when the result is determined by the outcome of a random future event.
However, the text makes it clear that the activities or provision of services of so-called fantasy sports cannot be subject to betting, when disputes in a virtual environment take place using avatars of real people.
This is the case of interactive games with prizes that do not depend on the number of participants or the volume raised by charging registration fees.
Requirements
Contrary to what the government proposed in MP 1182/23, only companies incorporated under Brazilian legislation, with headquarters and administration in the national territory, will be able to request authorization, leaving foreign companies out.
Sports betting regulations will define conditions such as:
- minimum value of share capital;
- at least one member with proven knowledge and experience in games, betting or lotteries;
- structure and operation of customer service for bettors;
- technical and cybersecurity requirements, providing nationally or internationally recognized certification requirements; and
- integration or association of the operating agent with national or international sports integrity monitoring bodies.
Organized crime
Interested parties must also adopt policies, procedures and internal controls to prevent money laundering, terrorist financing and the proliferation of weapons of mass destruction, and must send data to the Financial Activities Control Council (Coaf).
These mechanisms should also seek to guarantee responsible gambling and the prevention of gambling disorder, in addition to the integrity of betting and the prevention of match-fixing and other fraud.
Participation prohibited
The fixed quota operating agent or its subsidiaries and controlling companies may not purchase, license or finance the purchase of broadcasting rights for sporting events held in Brazil, by any means or process.
They will also not be able to grant or advance amounts or bonuses for placing a bet or carry out any type of arrangement to enable or facilitate access to credit by bettors, even if independent representatives are installed in their establishment.
On this topic, an amendment approved in the Plenary, by deputy Weliton Prado (Solidariedade-MG), allowed the hiring of lottery agents.
Advertising
In relation to commercial advertising, those from companies without authorization to operate the lottery will be prohibited; that convey unfounded claims about the chances of winning or about possible gains that bettors can expect; or that present the bet as socially attractive or contain statements from well-known personalities and celebrities that suggest that the game contributes to personal or social success.
These advertising pieces may not suggest or give rise to the understanding that betting can be an alternative to employment, a solution to financial problems, a source of additional income or a form of financial investment. Furthermore, its content cannot contribute to offending Brazilian cultural beliefs or traditions, especially those contrary to the bet.
In these situations, communication companies or internet providers and websites must remove the advertisement from circulation after notification from the Ministry of Finance.
The regulations may provide for restrictions on times, programs, channels and events for the broadcasting of advertising and advertising of bets, in order to prevent them from being disclosed to minors.
Bettors
The text guarantees bettors all the rights provided for in the Consumer Protection Code (Law 8,078/90) and also access to clear information and guidance on how betting works, the conditions and requirements for correct prediction and withdrawal of the prize.
To make this possible, the operating agent must have a customer service via electronic or telephone channel with free access and use. Zeca Ribeiro / Câmara dos Deputados
Deputies approved the project in a Plenary session this Wednesday
According to the project, directors and partners of the operating agent, public agents linked to federal regulation or supervision of these bets or people with access to the computerized systems of this lottery will not be able to place bets on these applications.
Minors under the age of 18 and anyone who has or may have any influence on the outcome of the events covered by the fixed-odd betting lottery will also be prevented from playing, including:
- sports director, technician, coach, member of the technical committee;
- referee and his assistant, sports manager, agent or attorney for athletes and coaches;
- member of a sports federation or confederation; and
- athlete participating in competitions organized by entities that are part of the National Sports System.
Bets placed by these people will be considered null and void. This applies equally to spouses, partners and relatives in a direct and collateral line, up to the second degree.
The notice about this prohibition must appear prominently in the online or physical marketing channels of this lottery, as well as in messages, publications and advertising pieces.
The project determines that the lottery operating agent adopts procedures to verify the validity of the players’ identity, including by crossing information with public or private databases.
Betting integrity
Another obligation of the operating agent will be to adopt security and integrity mechanisms when placing fixed odds bets. The events on which bets will be placed must include actions to avoid manipulation of results and corruption.
To do this, the operating agent will have to be part of a national or international body monitoring sports integrity.
Bets proven to be made with result manipulation and corruption in events will be null and void.
Payments
In order to avoid circumvention of regulations, the text transfers to institutions authorized to operate payment arrangements the prohibition of carrying out transactions relating to bets made with unauthorized companies.
For the payment of bets and prizes, only institutions authorized to operate by the Central Bank may offer virtual accounts or financial services of any nature.
Bettors’ resources held in transaction accounts with betting sites will be considered separate assets, not to be confused with the assets of the operating agent. Therefore, the amounts cannot be subject to seizure, kidnapping or court order due to debts of betting companies, for example.
The redemption of funds from these transaction accounts can only occur with transfer, credit or remittance to bank accounts maintained by the bettor in financial institutions with headquarters and administration in Brazil and authorized to operate by the Central Bank.
Prize not redeemed
In relation to prizes not redeemed within 90 days, which according to the original text would be allocated entirely to the Student Financing Fund (Fies), an amendment approved by the Plenary, by deputy Gilson Daniel (Podemos-ES), directs 50% of the prizes not redeemed to the National Fund for Public Calamities, Protection and Civil Defense, leaving the other half with Fies.
