Law 14,790/23, also known as the “Bets Law”, was sanctioned on December 30, 2023. It regulates fixed-odd bets, both in virtual and physical media, and defines the rules for taxation, distribution and supervision of this Marketplace. But because of a presidential veto, ABAESP (Brazilian Sports Betting Association) decided to create a petition.
The law establishes new rules on the free distribution of prizes as advertising and on the distribution of prizes carried out by civil society organizations. In addition, it changes other laws and provisional measures related to the topic.
Fixed odds betting is a lottery modality in which the player puts a certain amount at risk in the expectation of obtaining a prize. Thus, the law also establishes guidelines for the operation of this service, determining the taxation applicable to companies and bettors.
ABAESP’s petition already has more than 10 thousand signatures
Therefore, ABAESP is calling on all sports bettors to unite in a cause that can directly affect their earnings. In other words, the presidential veto on taxation on prizes received by bettors.
Therefore, the association started a petition to show senators and deputies the strength of sports betting enthusiasts. The requirement is that the National Congress overrides the vetoes of the paragraphs of art. 31 of Law 14,790/23.
To participate in the petition, simply access the link HERE.
When you sign on change.org, the site suggests you make a donation. However, the amount donated is not directed to ABAESP, but to the subscription platform itself.
Therefore, the entity is not requesting or suggesting any type of financial contribution, just your signature and sharing.
To date, more than ten thousand people have signed the action to overturn the presidential veto. The entity’s next goal is to reach 15 thousand subscribers.
See the association’s full letter
Below is ABAESP’s official call to the National Congress for the petition:
Reference: Federal Law 14,790, of December 29, 2023. Veto nº 49/2023
Subject: Undersigned – Contributions to the overturn of the vetoed provisions nº 49.23.001, 49.23.002 and 49.23.003, respectively paragraphs 1, 2 and 3 of article 31 of Law 14,790, of December 29, 2023.
The Brazilian Sports Betting Association, ABAESP, congratulates the Legislative Branch through the Honorable Senators and Deputies, and publicly expresses on behalf of sports betting consumers the negative impacts of not overturning the presidential vetoes of the devices mentioned above.
The regulatory challenge is to channel gambling to legal platforms in order to inhibit illegal gambling. And the veto of the first three paragraphs of Article 31, which dealt with the taxation of income tax on prizes received by bettors, raises fundamental questions for the success of the regulation.
Unlike lottery bets, fixed-odd bets are recurring and have proportionality between prizes and betting costs. In lotteries, winnings are infrequent and disproportionate to the costs of betting.
ABAESP requests the withdrawal of article 31
It is a fact that high tax rates lead consumers to replace legal operators, those duly licensed, with those who operate outside the law. There is a direct relationship, worldwide, between excessive taxation and the migration of bettors to the illegal market.
Taxation of player earnings is not a common practice in the world’s major markets, and even among the few countries with source taxation on player earnings, taxation considers exemption bands and earnings ranges.
With the increase in the bettor’s effective tax rate, part of the market may resort to informality, negatively affecting revenue, in addition to, of course, significantly undermining the protection and legal security for consumers of this type of betting.
In favor of the success of the regulated market, the undersigned citizens hope that the National Congress rectifies the Executive’s mistake, overturning the vetoes on paragraphs 1, 2 and 3 of article 31 of Law 14,790/2023, reestablishing the legislation as approved by the Senate and by the Chamber of Deputies.
