This Wednesday, the 29th, the Senate Plenary is expected to vote on the proposal to regulate fixed-odd sports betting, known as bets. This happens after joint processing at the CAE and the Sports Commission (CEsp).
PL 3626/2023, also from the Executive Branch, changes the law that provides for the free distribution of prizes for the purpose of advertising (Law 5,768, of 1971) and the law that deals with the allocation of lottery collections and the lottery betting modality fixed quota (Law 13,756, of 2018). It was also approved last week.
The project defines the betting lottery as a betting system that includes virtual online gaming events and real sporting events.
Bets can be placed physically or virtually. The authorization act will specify whether the operating agent can act in one or both modes.
According to the text, authorization from public authorities for fantasy sport, an electronic sport in which disputes take place in a virtual environment, based on the performance of real people, is waived.
Authorization and advertising
The future standard will require authorization by the Ministry of Finance, with a term of up to 3 years and may be revised at any time. However, the adversarial process and broad defense of the interested party are ensured.
According to the project, legal entities must comply with requirements such as:
- headquarters and administration in the national territory;
- proven knowledge of games and betting;
- compliance with cybersecurity requirements;
- internal control procedures;
- money laundering prevention mechanisms.
The text also regulates the communication and advertising actions of betting systems, the fight against misleading advertising and the integrity of betting.
Furthermore, the project stipulates penalties in case of non-compliance with the rules.
Regulation of sports betting and allocation of funds
According to the text approved by the Chamber of Deputies, 2% of the amount collected will go to social security. Other recipients of the resources will be the areas of sport (6.63%) and tourism (5%).
In sports, the amounts will be divided between the Ministry of Sports (4%), athletes (1.13%) and specific sports confederations, with percentages varying between 0.05% and 0.4%. Half a percent of the amount will be directed to state sports departments, which will have to distribute half to municipal sports departments, proportionally to the city’s population.
In tourism, 4% will be allocated to the Ministry of Tourism and 1% will go to Embratur. Law 13,756, of 2018, 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%.
Still according to the proposal, education will receive 1.82% of what is collected. Within this amount, 0.82 percentage points will be allocated to early childhood schools or primary and secondary schools that have achieved targets for national assessment results.
Finally, the remainder (1%) will go to public secondary technical schools.
