The approved text maintained the percentage of 95% (ninety-five percent) of the operator, only changing the destinations of the lottery's social destinations, as follows: 3.37% (three point thirty-seven percent) to the FNS – National Health Fund, in the case of the Health Lottery, or to the Brazilian Agency for the International Promotion of Tourism – Embratur, in the case of the Tourism Lottery. The percentage of 1.63% (one point sixty-three percent) to Brazilian sports entities that cede the rights to use their names, brands, emblems, anthems, symbols and the like for the dissemination and execution of the Fixed-odds lottery. The values of the prizes not claimed by the players of the new lotteries will be reverted to the FNS (Health Lottery), and to Embratur (Tourism Lottery).
The approved bill establishes that the Ministry of Economy will define, within 30 days, “the rules for the concession of the operation of the Health Lottery, by the Ministry of Health, and of the Tourism Lottery, by the Ministry of Tourism”. This wording raises some questions and concerns:
The latest information on the process of regulation of the Fixed Quota Lottery by the Ministry of Economy pointed to the granting of licenses in the authorization model, without the need for prior bidding, with an unlimited number of operators who could obtain the license by fulfilling certain requirements and by paying a fee, which was said to be around R$ 22.2 million (approximately USD 4 million). The concession process provided for by Bill 1561/20, however, requires a prior bidding procedure and the award is made in favor of the company(ies) offering the highest bid(s). The number of licenses also need to be previously defined.
The big question, still unanswered, is how the government intends to make three Fixed-Odds Sports Betting Lotteries compatible at the federal level (Health Lottery, Tourism Lottery and the Fixed Quota Lottery of the Ministry of Economy), with potential different modalities and costs of granting. And, consequently, if and how this Bill, if sanctioned by the President, could further delay the regulation of Fixed-Odds Sports Betting.
Luiz Felipe Maia
Founding partner of MAIA YOSHIYASU Advogados
