The sports betting PL was approved by the Chamber of Deputies and goes to the Federal Senate. The bill determines standards for the sports betting and online casino gaming sector.
The sports betting PL rapporteur, deputy Adolfo Viana (PSDB-BA), decided to add the online gaming modality.
The proposal was forwarded by the government with the aim of regulating the sports betting sector and further increasing public coffers revenue.
The Ministry of Finance‘s expectation is to raise between R$6 billion and R$12 billion in the coming years. However, the projection for 2024 is to receive around R$700 million.
Portal G1 detailed what can and cannot be done in the sports betting PL. Check it out below!
Sports betting PL: see what will be allowed or prohibited if the proposal is approved
The bill that establishes rules for the sports betting and online betting market, such as virtual casinos, is being processed in the Federal Senate.
The text was sent in July by the federal government and this Wednesday (13) it was approved by the Chamber of Deputies. Now, the project awaits the analysis of senators.
The PL was sent by the government with the aim of regulating the betting market and increasing revenue. Among other points, the text establishes the taxation of prizes and betting houses, operating fees and rules for advertising in the sector.
The government’s expectation is, with the measure, to raise between R$6 billion and R$12 billion annually. For next year, however, the estimate is lower, at R$700 million – as the market is not yet regulated.
See what will be allowed if the proposal is approved:
The new rules apply to which sector?
The new rules apply to so-called fixed odds bets on real sporting events, that is, games in which the bettor knows, at the time of betting, how much he could win if he is right.
The project’s rapporteur, deputy Adolfo Viana (PSDB-BA), included online games in the modality.
Who will be able to operate in the betting market?
Online betting companies will have to undergo an authorization process, which will be carried out by the Ministry of Finance.
Authorizations will be granted after payment of a fee of up to R$30 million, are non-transferable and may last for up to 3 years.
There will be no limit to the number of authorized bookmakers.
The project also establishes that the company’s reputation and technical and financial capacity will be analyzed.
Furthermore, granting authorization will take into account whether the company:
- is headquartered and incorporated in Brazil;
- has a customer service channel for bettors and an ombudsman
- has mechanisms to prevent money laundering, terrorist financing and the proliferation of weapons of mass destruction;
- takes actions to prevent betting addiction;
- has mechanisms to guarantee integrity and prevent bet manipulation.
It will be up to the Ministry of Finance to define how these requirements will be assessed.
Bookmakers may not:
- granting an advance or prior advantage as an incentive to bet;
- establish a partnership to facilitate access to credit for bettors;
- and allow the installation of credit access locations at their headquarters.
- The text also establishes that subsequent regulation by the department will establish other criteria, such as the structure and operation of companies.
Who can bet?
Over 18 years of age, with the exception of:
- owner, administrator, director, person with significant influence, manager or employees of the bookmaker;
- public agent with duties directly related to regulation;
- person who has or may have access to the betting house’s computerized systems;
- person who has or may have any influence on the outcome of the bet object, such as referees and athletes;
- and people provided for in the regulations of the Ministry of Finance;
How will the betting prize be received?
According to the proposal, awards can be received by:
- Deposit through transfers, credits, remittances or payment of ownership into accounts of financial institutions authorized by the Central Bank.
- Credit to bookmakers’ virtual wallets. In this case, the money can only be used for new bets with the same company.
Forgotten Features
According to the proposal, the player will lose the right to claim the prize if he fails to notify the company within 90 days of announcing the result of the bet.
- “Forgotten” resources will be divided equally and sent to the Student Financing Fund (Fies) and the National Public Calamity Fund (Funcap).
- According to the project, resources deposited by bettors in bookmaker accounts cannot be considered company assets. This prevents players’ money from being blocked, kidnapped or used as company assets in the event of bankruptcy.
How will tax be collected?
Bettors:
- Prizes will be taxed based on Income Tax (IRPF). The rate will be 30%.
- There will be an exemption, however, for resources that add up to the value of the first IRPF bracket – that is, the exemption limit. Currently, the range is R$2,112. In other words, prizes of up to R$2,112 will be exempt.
Bookmakers:
- Bookmakers will be taxed based on the amount collected – after deductions from payment of prizes and income tax on prizes – from bets. The rate charged will be 18%.
Yes, but the project establishes rules. According to the text approved by the chamber, advertising campaigns in the sector may NOT:
- be made by companies that do not have authorization to operate;
- display unsubstantiated claims about possible winnings from betting;
- present betting as a social attraction;
- broadcast celebrity statements about the benefits of betting;
- suggest that betting is a financial alternative;
- offend cultural beliefs.
Will the sector be able to have advertising campaigns?
Yes, but the project establishes rules. According to the text approved by the chamber, advertising campaigns in the sector may NOT:
- be made by companies that do not have authorization to operate;
- display unsubstantiated claims about possible winnings from betting;
- present betting as a social attraction;
- broadcast celebrity statements about the benefits of betting;
- suggest that betting is a financial alternative;
- offend cultural beliefs.
The proposal also prohibits betting companies from acquiring or licensing broadcasting rights for sporting events in Brazil.
The text also says that a regulation will be defined later by the Ministry of Finance and that the new rules must contain determinations to include:
- warning to discouraging gambling
- warning about the harm of betting
- informative actions to raise awareness among bettors
- betting addiction prevention actions
- and restrictions on campaign display times and vehicles
Will the bettor be protected by the Consumer Protection Code?
Yes. The text establishes that the bettor will be protected by the Consumer Protection Code (CDC). They must also be provided with information and guidance:
- about rules and requirements for awards;
- and about risks of losses and gaming addiction.
- What does the proposal consider as an infraction?
- exploit fixed-odd betting lottery without authorization from the Ministry of Finance;
- carry out prohibited or unauthorized activities;
- fail to provide documents, data or information to the competent body;
- disseminate advertising or propaganda from unauthorized betting lottery operators;
- encourage or allow practices that undermine sporting integrity, the uncertainty of sporting results, the transparency of rules, equality between competitors and any other form of fraud or interference in the activity.
What punishments does the proposal foresee?
Punishments depend on the severity and duration of the infraction, the value and recurrence, they are:
- warning for companies, fine of 0.1% to 20% of the previous year’s revenue. The maximum value is R$2 billion;
- in cases of individuals or associations that do not carry out business activities, the fine varies between R$50,000 and R$2 billion;
- partial or total suspension of activities for up to 180 days;
- revocation of authorization or prohibition on obtaining new authorization;
- prohibition of carrying out new activities;
- prohibition from participating in tenders for at least five years;
- impediment to take up a position in betting companies.
If match manipulation or other fraud is suspected, the Ministry of Finance may determine precautionary measures, for example, the suspension of bets and the withholding of prize payments. Failure to comply with precautionary measures can also lead to a fine of R$10,000 to R$200,000.
The sports betting PL also authorizes the Ministry of Finance to suspend the administrative process if the person being investigated signs a commitment to interrupt the activities being investigated, correct irregularities, compensate for losses and comply with other agreed conditions.