The Chamber of Deputies approved the bill regulating online betting, known as bets (PL 3626/23).
The approved text taxes companies and bettors, defines rules for operating the service and determines the sharing of revenue, among other points.
The project goes to sanction.
The government’s expectation is to increase revenue with the regulation of the proposal and contribute to the goal of zero deficit.
Plenary Discussion
The project was obstructed by deputies from the evangelical segment.
According to deputy Eli Borges (PL-TO), the assessment of the Evangelical Parliamentary Front is that the regulation of gambling brings more harm to society than the expected revenue.
“We are taking another step forward to involve young people and Brazilian citizens in an unprecedented game”, he criticized.
The president of the Chamber, Arthur Lira, countered Eli Borges’ criticism. He highlighted that the proposal was already approved by deputies in September and by the Senate, where evangelical parliamentarians won victories.
Lira highlighted that there are no physical games and that postponing the vote does not prevent online games, but encourages lack of control and money laundering.
“If we simply don’t vote on the regulations, will games cease to exist? People stop playing, bets stop working and sponsoring teams, events and tournaments? No!”, said Lira.
He stated that gaming platforms already exist and need regulation. “Here we are not increasing or decreasing, we are trying to regulate and take [the sector] seriously to avoid, for example, money laundering,” he said.
According to the proposal’s rapporteur, deputy Adolfo Viana (PSDB-BA), Brazil needs to face the responsibility of regulating online betting, which is already a reality throughout the national territory.
“We want a law that, definitively, establishes that these betting sites will be supervised and taxed by the country. If we do not approve the project, the games will continue to take place without supervision”, he said.
Regulation of online betting
Fixed odds bets are those in which the bettor knows exactly what the rate of return is at the time of the bet. These are bets generally related to sporting events.
The proposal approved by the Chamber, however, reestablished the authorization of betting for virtual online gaming events, the so-called online casinos, which had been removed from the text by the senators.
Evangelical deputies allied with the opposition tried to remove this point during the highlights vote, but were defeated.
The maintenance of online games was voted in favor by 261 deputies against 120.
Thus, the proposal’s rapporteur stated that the exclusion of online games would “end the project”.
Tax division
The text determines the payment of 2% Social Security Contribution on the proceeds of the collection. The resources will be divided between education (1.82%), sport (6.63%) and tourism (5%).
While companies will be able to keep 88% of gross revenue for costs. The 12% will be divided between education, public safety, sport and other areas.
Income tax
The proposal establishes a 15% Personal Income Tax (IRPF) charge on the net value of the prizes obtained.
The charge will be made for the total number of bets per year, but on the amount that exceeds the first range of the IRPF table (R$ 2,112).
While companies will be taxed at 12%.
Betting companies
The bets will be operated by companies authorized by the Ministry of Finance, which have headquarters and administration in the national territory. They must demonstrate experience in games and other technical requirements established by the Executive.
In addition, companies must have a Brazilian member on their board who holds at least 20% of the share capital.
The controlling shareholder cannot act directly or indirectly in a professional sports organization, nor be a director or linked to financial institutions that process bets.
Therefore, interested companies must pay up to R$30 million for the right to exploit up to 3 commercial brands for up to five years.
The project obliges companies to adopt practices to serve players, combat money laundering, encourage responsible gambling and prevent fraud and bet manipulation.
Punishment for irregularities
The approved proposal authorizes the suspension of payments for bets investigated for manipulation of results. It also requires companies to verify the identity of bettors using facial recognition technology.
Therefore, operators must monitor customer activities to identify potential harm or abuse. In addition, platforms will also be required to develop time-limiting features for users.
Players are banned
The following will be prevented from playing, among others:
- Under 18 years old;
- People diagnosed with gambling disorders;
- People with influence over sporting events or the gaming platform;
- Sports directors, coaches, referees, agents and athletes.
Regulation of online betting and advertising
Betting communication and advertising actions, carried out by operating agents, must include warnings discouraging gambling and warnings about its harm, in addition to observing restrictions on broadcast times and channels.
However, advertisements that present the bet as socially attractive or contain statements from well-known personalities that suggest that the game contributes to social or personal success will be prohibited.
