The texts aim to establish clear rules for the fixed-odds betting market, created by Law nº 13.756/2018, filling a regulatory gap observed since its creation. The Ministries of Finance and Sports are co-authors of the proposed PM and Bill texts. The goal is to guarantee more confidence and security for bettors, thanks to the transparency of the rules and supervision.
In addition, a bill will be sent to the National Congress later this Tuesday, which deals with the structure and administrative procedures for overseeing this sports betting market.
The Provisional Measure gives the Ministries of Finance and Sports, together, new tools to curb betting manipulation, especially those focused on sports-themed events.
"The collection with bets goes to the budget with a low forecast. We estimate something around R$ 2 billion (US$ 420m) per year," said the Minister of Finance, Fernando Haddad.
In a market that is fully regulated, established and in full revenue, the potential for annual collection is between R$ 6 billion (US$ 1.26bn) and R$ 12 billion (US$ 2.52bn). This estimate considers data on the growth of this segment in the world and in Brazil.
“This is yet another fundamental initiative of the Brazilian government, which, by regulating sports betting, will curb match-fixing and, above all, preserve sporting integrity, in its broadest sense, extolling the values of sport as a reference for all of society. This is the focus of the Ministry of Sport with this MP, in joint work with all the interlocutors involved in this matter,” pointed out the Minister of Sport, Ana Moser.
Finance and Sports have sought the most efficient and modern systems for regulating and supervising the sector, in line with the best international practices. In the Ministry of Finance, a secretariat will be created responsible for analyzing documents, for the approval or not of 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 secretariat will be created by a decree that should be published soon in the Official Gazette of the Union.
“It is worth noting the performance of the Ministry of Sport, led by Minister Ana Moser and her team, which were fundamental to fill this gap in the non-regulation of betting in Brazil,” said the special advisor to the Executive Secretariat of the FM, Francisco Manssur.
Operation
The edited texts establish 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 must allocate 18% on Gross Gaming Revenue (GGR), the revenue obtained from all games played, subtracting prizes paid to players and taxes levied on legal entities. On the prize received by the player there will be taxation of 30% referring to Income Tax, respecting the exemption of R$ 2,112 (US$ 445).
The proceeds from fees and taxes will be allocated to areas such as public safety, basic education, sports clubs and social actions. The total amount raised will be divided to benefit different sectors of society.
Of the 18% on the GGR, 2.55% will be allocated to the National Fund for Public Security (FNSP) for actions to combat betting manipulation, money laundering and other acts of a criminal nature that may be practiced in the context of betting or related to it, 0.82% for basic education, 1.63% for sports clubs, 10% for social security and 3% for the Ministry of Sports. The remaining 82% goes to operators.
Health and advertising
The texts establish 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: GMB
