MAR 26 DE NOVIEMBRE DE 2024 - 09:31hs.
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Lula's PM to tax sports betting has already received more than 40 amendments in Congress

Even before the return of activities in Congress after the winter recess, deputies and senators have already presented more than 40 amendments to Provisional Measure (PM) 1,182, which regulates sports betting in Brazil. The PM was presented by the Lula government last week and provides for the collection of an 18% tax on the income of betting companies. Parliamentarians have 120 days to analyze the text.

Under the proposal, which has already entered into force but must be evaluated by Congress, the resources will be shared between the National Public Security Fund (FNSP), sports clubs, education, social security and the Ministry of Sports.

According to the Minister of Finance, Fernando Haddad (PT), the expectation is that, at first, the federal government collects around R$ 2 billion (US$ x). Over time, the ministry is betting on an increase in revenues between R$ 6 billion (US$ x) and R$ 12 billion  (US$ x).

Some of the amendments intend to include new entities in the allocation of resources or increase or decrease the participation of those that are already part of it.

Understand how the division of the collection with the bets will be:

  • Social security: 10%
  • National Public Security Fund (FNSP): 2.55%
  • Basic education: 0.82%
  • Ministry of Sports: 3%
  • National Sports System (clubs and athletes): 1.63%

Amendments

According to an amendment presented by Deputy Julio Cesar Ribeiro (Republicanos-DF), the part destined for the Ministry of Sport should be distributed to the Sports departments of the states and the Federal District. If the suggestion is accepted, the ministry would keep 2% of the total collection and the secretariats, 1%.

The deputy from Minas Gerais Cabo Junio Amaral (PL) wants to increase the share allocated to the FNSP - which will be responsible for overseeing sports betting companies, from 2.55% to 4.55%. According to the parliamentarian's proposal, the companies, instead of keeping 82% of their total income, would keep 80% - and the difference of two percentage points would remain with the body linked to the Ministry of Justice and Public Security.

Deputy Fred Costa (Patriota-MG) intends to include in the text an article in which it obliges sports betting apps and websites to notify the Public Ministry in cases of suspected match-fixing.

"This measure is crucial to guarantee integrity and transparency in the sports betting sector, in addition to contributing to the prevention and fight against criminal activities, such as match-fixing and money laundering," says an excerpt from the justification for the proposal presented. to other parliamentarians.

Already the former president of Flamengo and federal deputy Bandeira de Mello (PSB-RJ) intends to include a mechanism to regulate the advertising of bookmakers - present in practically all clubs in the A series of the Brazilian Championship. He suggests changes in betting advertising to discourage gambling addiction.

Deputy Kim Kataguiri (União-SP) intends to include electronic sports (eSports) organizing entities in the cake of the collection destined to the National Sport System.

Deputy Rosângela Moro (União-SP), also presented an amendment to the PM. She suggests that 50% of the income destined to the Ministry of Sport be directed to the Brazilian Paralympic Committee (CPB). As the 3% earmarked for the ministry has no indication of where it will be applied, the deputy also suggested that the percentage be invested in supporting women's sports.

The complete list of amendments can be found on the Senate website (available in Portuguese).

Source: GMB