SOF/MPO Ordinance No. 113, of April 26, brought significant changes to the sports betting sector in Brazil. The Federal Budget Secretary, based on Decree No. 11,353, of January 1, 2023, and Joint Ordinance STN/SOF No. 163, of May 4, 2001, announced the review of the budget classifications of the Union’s revenues.
Fixed odds sports betting enters the Ordinance
New Natures of Revenue
New types of revenue were included in the Annex to SOF/ME Ordinance No. 5,118, of May 4, 2021. Among them, the following stand out:
- Granting of Fixed Odds Betting Lottery (Code 1.3.3.9.01.0.0)
- Prescribed Fixed Odds Betting Lottery Prizes (Code 1.9.3.1.10.0.0)
- Inspection Fee Due for the Commercial Exploitation of Fixed Odds Betting Lottery (Code 1.1.2.1.08.0.0)
- Authorization Fee for Free Distribution of Prizes (Code 1.1.2.1.09.0.0)
- Exclusive Instant Lottery Grant – LOTEX (Code 1.3.3.9.02.0.0)
These changes have a direct impact on the betting market, expanding revenue possibilities for the sector.
New Sources/Destinations of Resources
The Ordinance also included new Sources/Destinations of Resources in paragraph a of Annex II of SOF/ME Ordinance No. 14,956, of December 21, 2021. The new sources are:
- National Fund for Public Disasters, Protection and Civil Defense (Funcap) (Code 182)
- Integrated Border Monitoring System (Sisfron) (Code 183)
- Prevention, Control and Mitigation of Social Harm Arising from Gaming in Health Areas (Code 184)
- Transfer to the Sports Secretariats, or Equivalent Bodies, of the States and the Federal District (Code 289)
These changes indicate the government’s concern with allocating betting resources to areas of public interest.
The Ordinance came into force on the date of its publication, with retroactive effects to January 1, 2024. These changes represent a milestone for the sports betting sector in Brazil, bringing new opportunities and challenges to the market.
SOF/MPO ORDINANCE No. 113, OF APRIL 26, 2024
Provides for budget classifications by source/destination of resources and by nature of revenue for application within the scope of the Union.
THE FEDERAL BUDGET SECRETARY, in the use of the duties established in section VII of art. 20 of Annex I of Decree No. 11,353, of January 1, 2023, and subsequent amendments, and in view of the provisions of the caput of art. 2nd of Joint Ordinance STN/SOF nº 163, of May 4, 2001, and the improvement of the budgetary process, which imposes the constant review of the budgetary classifications of the Union’s revenues, resolves:
Art. 1 Include, in the Annex to SOF/ME Ordinance No. 5,118, of May 4, 2021, the following types of revenue:
Code – Specification
1.3.3.9.01.0.0 – Granting of Fixed Odds Betting Lottery
1.9.3.1.10.0.0 – Prescribed Fixed Odds Betting Lottery Prizes
1.1.2.1.08.0.0 – Inspection Fee Due for Commercial Operation of Fixed-Odds Betting Lottery
1.1.2.1.09.0.0 – Authorization Fee for Free Distribution of Prizes
1.3.3.9.02.0.0 – Exclusive Instant Lottery Grant – LOTEX
Allocation of resources from sports betting
Art. 2 Include, in paragraph a of Annex II of SOF/ME Ordinance No. 14,956, of December 21, 2021, the following Sources/Destinations of Resources:
Code – Description:
182 – National Fund for Public Disasters, Protection and Civil Defense (Funcap)
183 – Integrated Border Monitoring System (Sisfron)
184 – Prevention, Control and Mitigation of Social Harm Arising from Gaming, in Health Areas
289 – Transfer to the Sports Secretariats, or Equivalent Bodies, of the States and the Federal District
Art. 3 This Ordinance comes into force on the date of its publication, applying its retroactive effects to January 1, 2024.
PAULO ROBERTO SIMÃO BIJOS“