The Provisional Measure (PM), forwarded to the Civil House and signed by the Ministries of Finance, Planning, Management, Health, Tourism and Sports, will guarantee more confidence and security to gamblers, thanks to the transparency of the rules and supervision. Thus, the ministries will have the possibility of editing ordinances to create mechanisms that avoid and curb cases of manipulation of results.
If sanctioned by President Lula, the PM will be published by the government and will be valid for 60 days, which can be extended for another 60 days. During this period of analysis by the Senate and House, changes can be made before making the text a law.
Draft Proposal - Provisional Measure by GAMES MAGAZINE BRASIL on Scribd
The text predicts that bookmakers will have a smaller share of the collection and more obligations with the government. The text of a decree for the creation of a working group to monitor problems in the sector, such as manipulation of results, was also forwarded to the president.
Among the main novelties, the PM attributes to the Ministry of Finance the responsibility of supervising the activity in Brazil. And determines that the flow of money between houses and bettors can only occur through bank accounts of institutions authorized by the Central Bank to operate in the country.
The Ministry of Finance has sought more efficient and modern systems, in line with the most efficient systems in the world. The Provisional Measure also provides for the creation of a secretariat within the structure of the Ministry of Finance, which will be responsible for analyzing documents for approving or not the accreditation of betting companies in the country. This secretariat will also monitor the volume of bets and revenue, ensuring greater control over the fixed-quota sports betting market.
The PM establishes that only qualified companies will be able to receive bets related to official sporting events, organized by federations, leagues and confederations. Companies that are not qualified will incur illegal practices and will be prohibited from carrying out any type of advertising, including in digital media. Companies will be taxed at 16% on the Gross Gaming Revenue (GGR), revenue earned from all games played minus prizes paid to players. The prize received by the player will be taxed at 30% Income Tax, respecting the exemption of R$ 2,112.00 (US$ 425).
In addition, the collection from fees and taxes will be allocated to important areas, such as public safety, basic education, sports clubs and social actions. The total amount collected will be divided in order to benefit different sectors of society.
Of the 16%, 2.55% will go to the National Fund for Public Security, for actions to combat match-fixing, money laundering and other acts of a criminal nature that may be practiced in the context of betting or related to it. A further 0.82% will be earmarked for basic education, 1.63% for sports clubs, 10% for social security and 1% for the Ministry of Sports.
The ministry may request technical, economic-financial and accounting information from companies, as well as data, documents and certificates related to the business. As for the tax rates, the PM amends Law 13,756/18 that allowed the operation of bookmakers in Brazil in some points:
*Decreases the percentage destined for bookmakers from 95% to 84%
*llocates 1% of the collection to the Ministry of Sport, an amount that did not exist in the law
*llocates 10% to social security, which did not exist either
The text maintains the percentage allocated to clubs and sports entities as already provided for by law, which is 1.63%. There was an expectation on the part of the CBF to increase this percentage to 4% on top of gross revenue, but the proposal, which was even presented by the confederation and later withdrawn, was not taken forward.
Fixed-odds bookmakers were authorized to operate in Brazil in 2018, after then President Michel Temer sanctioned Law 13,756. After almost five years, the legislation has not yet been regulated, that is, no rules have been formulated for its operation.
The topic returned to the agenda with the election of Lula and the appointment of Fernando Haddad to the Ministry of Finance, the body that drafted the Provisional Measure delivered to the president this Wednesday (10). Below are the main differences between the two texts.
Law of 2018
*95% for betting lottery operator
*2.55% for the National Public Security Force (FNSP)
*1.63% for sports entities
*0.82% for public schools
PM of 2023
*84% for betting lottery operator
*10% for Social Security
*2.55% for the National Public Security Force (FNSP)
*1.63% for sports entities
*1% for the Ministry of Sports
*0.82% for public schools
Officials and athletes banned from betting
The PM also brings news in relation to advertising by companies. Prohibits advertising from bookmakers that are not licensed. To obtain a license, they must pay a fee and comply with a series of rules, which will still be defined by means of an ordinance.
The Ministry of Finance prohibits certain people from placing bets, including administrators and employees of bookmakers themselves, minors under 18 years of age, public agents and individuals linked to sports entities, such as directors, coaches and athletes - described in the text as people who may have any influence on the outcome of the actual event.
This week, the Justice of Goiás accepted a complaint from the Public Ministry against 16 investigated in the operation Penalidade Máxima II, among them seven football players. The process investigates evidence of manipulation of results.
Prohibition of purchase of rights
The text of the measure also establishes impediments for betting companies to operate in the market for the purchase of television rights, internet or any other type of broadcast of sporting events. They are also prevented from financing these purchases.
President Lula also received a draft of a decree to discuss actions to combat match-fixing. If approved, three representatives from the Ministry of Sports and three from the Ministry of Justice will be part of the group.
There will also be chairs in the working group, as guests, that is, without decision-making power, for representatives of the OAB, CBF, COB, CPB, Brazilian Institute of Sports Law (IBDD), National Association of Games and Lotteries (ANJL), Brazilian Institute of Responsible Gaming (IBJR), Brazilian Sports Betting Association (ABAESP), Brazilian Association for the Defense of Sports Integrity (ABRADIE), SIGA Latin America and International Betting Integrity Association (IBIA).
So far, the participation of any entity representing athletes is not foreseen. The forecast is that the group meets every fortnight to discuss the problems.
From the moment an PM is published by the government (which has not yet occurred in the case of betting regulation), its term is 60 days, extendable for another 60. During this period, the text must be reviewed by members of the House and Senate, who can make changes to the wording and enact it into law.
Health and advertising
The PM establishes that betting companies must promote informative and preventive actions to raise awareness among gamblers and prevent pathological gambling disorder. The initiative aims to ensure the mental health of gamblers, preventing betting from becoming an addiction.
The rules for communication, publicity and marketing, such as advertising time and the format of online advertisements, will be prepared in partnership with the National Council for Advertising Self-Regulation (Conar). The aim is to ensure that marketing actions are responsible and ethical, contributing to a safe and regulated betting environment.
Source: Ministry of Finance / GMB
