{"id":125063,"date":"2023-09-21T11:31:02","date_gmt":"2023-09-21T14:31:02","guid":{"rendered":"https:\/\/igamingbrazil.com\/uncategorized\/2023\/09\/21\/legal-framework-for-gambling-senate-debates-inclusion-of-fantasy-games\/"},"modified":"2023-09-21T11:35:38","modified_gmt":"2023-09-21T14:35:38","slug":"legal-framework-for-gambling-senate-debates-inclusion-of-fantasy-games","status":"publish","type":"post","link":"https:\/\/igamingbrazil.com\/en\/legislation-en\/2023\/09\/21\/legal-framework-for-gambling-senate-debates-inclusion-of-fantasy-games\/","title":{"rendered":"Legal Framework for Gambling: Senate debates inclusion of Fantasy Games"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <strong>Legal Framework for Gambling<\/strong> encompasses <a href=\"https:\/\/igamingbrazil.com\/en\/legislation-en\/2023\/08\/15\/legal-framework-for-electronic-games-is-analyzed-by-the-senate\/\" target=\"_blank\" rel=\"noreferrer noopener\">electronic games<\/a> under the same taxation rules applied to computer equipment, which may result in a reduction in the tax burden on them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These <strong>rules<\/strong> are established in Law 8,248, of 1991, and in Law 11,196, of 2005.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PL 2,796\/2021<\/strong> establishes a definition for electronic games as software that presents graphic and audiovisual elements for recreational purposes, in which the user can control the actions and interact with the interface.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, slot machines are not included and now the <strong>Senate<\/strong> is debating the inclusion of <strong>Fantasy Games<\/strong>, as stated by <a href=\"https:\/\/www12.senado.leg.br\/noticias\/materias\/2023\/09\/20\/debatedores-divergem-sobre-fantasy-games-no-marco-dos-jogos-eletronicos?utm_campaign=noticias&amp;utm_medium=WebPush&amp;utm_source=senado-noticias\" target=\"_blank\" rel=\"noreferrer noopener\">Ag\u00eancia Senado<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Check out the news about the Legal Framework for Gambling in full<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The inclusion of so-called <em>fantasy games<\/em> in the legal framework for the electronic games industry divided the opinion of debaters who participated this Wednesday (20) in a thematic debate session in the Senate on bill (PL) <a href=\"https:\/\/www25.senado.leg.br\/web\/atividade\/materias\/-\/materia\/154931\" target=\"_blank\" rel=\"noreferrer noopener\">2,796\/2021<\/a>. Given the divergence between experts, senators defended the postponement of the vote on the matter, which is being processed urgently and is ready for deliberation in the House Plenary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The project defines <em>fantasy games<\/em> as disputes in a virtual environment based on the performance of real athletes. Participants in this modality \u201cclimb\u201d imaginary teams, made up of characters that simulate the statistical performance of real athletes in a professional sport, such as football, volleyball or basketball.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The text from the Chamber of Deputies includes electronic games in the same taxation rules as computer equipment. As a result, investments in game development or production are now considered as an application in research, development and innovation (PDI). The Information Technology Law (<a href=\"https:\/\/normas.leg.br\/?urn=urn:lex:br:federal:lei:1991-10-23;8248\" target=\"_blank\" rel=\"noreferrer noopener\">Law 8,248, of 1991<\/a>) grants financial credit on PDI expenses to deduct federal taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the thematic debate session, some of the debaters defended the inclusion of<em> fantasy games<\/em> in PL 2,796\/2021. For the other segment of experts, the measure could open a loophole in the bill for more lenient taxation of gambling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cJabuti\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Vilson Antonio Romero, president of the National Association of Tax Auditors of the Federal Revenue (Anfip), PL 2,796\/2021 should be dismembered. He suggests that the provisions dealing with fantasy games be analyzed in an autonomous proposal, submitted for analysis by Senate committees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 From the beginning, everything happened in a rush in the Chamber of Deputies. A Plenary amendment that covers <em>fantasy games<\/em> had been rejected by the rapporteur. I think it&#8217;s a &#8216;jabuti&#8217; in the legal framework of electronic games. Fantasy games that are linked to a real game, [&#8230;] to a football player&#8217;s lineup, have to be completely unlinked. They must be treated in the same way as the regulation of betting taxation. We have to bring them closer to fixed bet games than to electronic games \u2014 he explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Professor at the Federal University of Bahia Lynn Gama Alves, a specialist in the relationship between games and education, reinforces the criticism. She points out a series of \u201cweaknesses\u201d in the bill. Among them, the inclusion of<em> fantasy games<\/em> in the matter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 There was an inappropriate combination of two distinct categories: video games and fantasy sports. Fantasy sports are limited to a type of game that involves betting, rewards, competitions and financial awards, considering the performance of athletes in sporting events. This characterization may indicate the opening of loopholes for betting platforms to adopt what is being said in the Legal Framework for gaming, &#8216;justifying&#8217; the use of some types of games that can be addictive. Different objects require separate landmarks that take into account their specificities. Why isn&#8217;t there a bill of its own? \u2014 he questioned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\r\nThe president of the Brazilian Association of Law and Economics, Oksandro Gon\u00e7alves, classifies PL 2,796\/2021 as \u201ca widespread confusion\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 It&#8217;s not exactly a landmark. The object is not clear, the definitions are not properly framed, and there is widespread confusion regarding several aspects. If it intends to bring legal certainty, these definitions must be precise. It&#8217;s a collection of loose items that need to be sorted. This is only possible through great discussion, and not through urgent requests \u2013 he considered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cStrategy and skill\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The president of the Brazilian Fantasy Sports Association, Rafael Marcondes, contested the criticism. For him, PL 2,796\/2021 is \u201cmature and ready to be approved\u201d. He defends the maintenance of <em>fantasy games<\/em> in the text as a way of leveraging Brazil&#8217;s investments in the technology area.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 <em>Fantasy sport<\/em> is a game of strategy and skill. It&#8217;s not betting and it&#8217;s not gambling. The legal nature of both activities is the same: technology. A gaming company, like a fantasy company, is mostly made up of people related to the technology area. The DNA of these two activities covered in the legal framework is the same: technology \u2014 he argued.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawyer Victor Targino de Ara\u00fajo, a legal consultant at the Sports Law Institute, agrees. He cited academic studies and court decisions from countries such as India and the United States to argue that<em> fantasy game<\/em> should not be confused with gambling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 <em>Fantasy games<\/em> are not similar to betting. They are their own figure because they are absolutely dependent on the player&#8217;s skill. This is very welcome in the bill. The first fantasy games began to be popular in the United States in the 1930s, linked to baseball. They were card games, they were physical games. Only the medium changed, but the game already existed. The game depends on skill to win. This parallel between skill and luck makes both figures unmistakable \u2014 he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawyer Udo Seckelmann, master in International Sports Law from the Higher Institute of Law and Economics in Madrid (Spain), highlights the differences between fantasy games and games of chance. He defends the approval of PL 2,796\/2021 as a way to attract foreign investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 Gambling involves an amount to be risked, an element of luck or chance and a prize to be paid if the prediction is correct. In <em>fantasy game<\/em> there is no such thing. While betting already has some legislative guidance, fantasy operators do not have this legislative and regulatory clarity. They arrive to invest, but become discouraged. Most give up precisely because they are afraid of making large investments in Brazil and, in a month&#8217;s time, the public authorities will knock on the door and prevent the full exploration of the activity due to confusion regarding the verticals (modalities) of the game &#8211; he warns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cAccelerated\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The thematic debate session was suggested by senator Leila Barros (PDT-DF). She criticized the \u201caccelerated processing\u201d of the matter in the Chamber of Deputies and in the Economic Affairs Committee (CAE) of the Senate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 Despite the urgency required to process PL 2,796\/2021, we cannot allow the matter to be forwarded quickly. Some of the main entities operating in the electronic games sector have expressed concern about the text of the project. They point out conceptual contradictions and items that were not covered by the regulatory framework \u2014 he considered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senator Fl\u00e1vio Arns (PSB-PR), president of the Education and Culture Commission (CE), classified as \u201cabsurd\u201d the vote on the matter in the Senate Plenary without discussion in other permanent bodies of the House.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 The characteristic of the Senate in all debates is that we do it with a lot of dialogue. Listen to all sectors of society, particularly this bill, which involves many tax, legal and educational aspects. We need to reach a common denominator, which favors Brazilian society in all aspects. For this dialogue to take place, time is needed. The intention is to vote tomorrow. This is absurd. Society has to rise up against this. Let&#8217;s discuss. It doesn&#8217;t make sense. The debate has to be had \u2013 he stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senator Veneziano Vital do R\u00eago (MDB-PB), 1st vice-president of the Senate, also defended more dialogue to build convergences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 Progress in this debate depends on us being able to reach some consensus. We need to dialogue, debate the matter point by point so that we deliver the best legislative result to society. We already have a starting point, which is PL 2,796\/2021. There are some natural controversies and disagreements about it. There is no doubt that the topic is current, relevant and has great economic and social impact \u2014 he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For senator Eduardo Gir\u00e3o (Novo-CE), it is necessary to be \u201ccautious\u201d when analyzing the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 When there is a rush, there are big controversies. I think we should exercise caution. Is it important for Brazil? Yeah, let&#8217;s look into it. Now, do the snare drum? Does it have to be now? The bill excludes 95% of Brazil&#8217;s gaming sector. In other words: it would exclude 1,500 Brazilian development companies. That is true? It&#8217;s a mess: we need to decant and know what&#8217;s behind it all \u2014 he warned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Technology<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senator Jorge Seif (PL-SC) defended the vote on the matter. He cited an informative note from the Senate Legislative Consultancy according to which gambling is not included in the definition of electronic games provided for in PL 2,796\/2021.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 Slot machines and other games of similar chance are not considered electronic games. At this point, I have nothing to object to. On the contrary: we need to support, legitimize, legalize and give Brazil the opportunity to grow in this very important area, which is technology \u2014 he stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senator Carlos Portinho (PL-RJ) also supports the project. The parliamentarian stated that, instead of seeking disagreements about the nature of electronic games, the most correct thing would be to recognize what they all have in common: the use and development of technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 Are we going to encourage conflicts between <em>fantasy<\/em> and <em>video games<\/em>? Now, everything is technology. Where is the convergence? Electronic games are the result of technological evolution, science and the exploration of a private activity. Electronic games, whether educational or competitive, are technology. And it is there in the Ministry of Science and Technology that the resources are located, because the legal nature of this activity, in its origin, arises from technological development \u2014 he explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ministries<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The thematic debate session was also attended by representatives from the Ministries of Finance and Science, Technology and Innovation (MCTI). According to Henrique de Oliveira, Secretary of Science and Technology for Digital Transformation at MCTI, although the ministry is in favor of a legal framework for the electronic games industry, PL 2,796\/2021 does not fulfill this purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 The project aims to be a legal framework. However, it does not make it clear whether the scope is restricted to consoles or whether it covers computer programs, software and systems used. As a result, from a tax relief point of view, incentives and incentives for research, development and production would be extremely limited \u2014 he stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">General Betting Coordinator at the Ministry of Finance, Simone Vicentini highlighted the budgetary-financial impact of the bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2014 With these exemptions, the estimated loss of revenue is around R$800 million per year. The Federal Revenue is contrary in this aspect. From a technical point of view, due to controversies and controversial points, we understand that it is also necessary to grant more time for debates and in-depth studies \u2014 he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Processing<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">PL 2,796\/2021 was presented by deputy Kim Kataguiri (Uni\u00e3o-SP) and approved by the Chamber in October 2022. In the Senate, the matter was distributed only to the CAE. The collegiate approved the report by senator Iraj\u00e1 (PSD-TO) in June this year and rejected the four proposed Plenary amendments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In August, parliamentarians presented requests for the Social Affairs Committees (CAS) to also give their opinion on the bill; Communication and Digital Law (CCDD); Human Rights (CHR); Education (CE); and Sport (CEsp). The requests were not analyzed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Legal Framework for Gambling encompasses electronic games under the same taxation rules applied to computer equipment, which may result in a reduction in the tax burden on them. These [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":125044,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3130],"tags":[3082,8119,8480,3916],"class_list":["post-125063","post","type-post","status-publish","format-standard","has-post-thumbnail","category-legislation-en","tag-bets","tag-fantasy-games-en","tag-legal-framework-for-gambling","tag-legislation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legal Framework for Gambling: Senate debates inclusion of Fantasy Games - iGaming Brazil<\/title>\n<meta name=\"description\" content=\"The Senate debated the inclusion of Fantasy Gambes in the Legal Framework for Gambling, as stated by Ag\u00eancia Senado.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/igamingbrazil.com\/en\/legislation-en\/2023\/09\/21\/legal-framework-for-gambling-senate-debates-inclusion-of-fantasy-games\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legal Framework for Gambling: Senate debates inclusion of Fantasy Games - 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