Sports betting cannot be considered a game of chance, at least in the eyes of Brazilian legislation. While activities classified as games of chance – including "jogo do bicho," casinos (physical or online), and digital entertainment such as the "jogo do aviãozinho" (airplane game), which gained popularity at the end of 2023 – are considered criminal offenses (as per the provisions of Decree-Law No. 3,688/1941), sports betting is legalized in Brazil, thanks to the enactment of Law No. 13,756/2018, which regulated this activity in the country.
However, despite the 2018 law, the regulation of sports betting was officially established in December 2023. On the last day of December, Bill No. 3,626/23, which addresses the operation of fixed-odds sports betting, known as "bets," was sanctioned by President Luiz Inácio Lula da Silva.
In contrast, so-called games of chance – due to the explicit prohibition of Decree-Law No. 3,688/1941 – are not legalized, despite strong interest from certain sectors. In 2022, the Brazilian Federal Chamber approved PL 442/91, which addresses the regularization of games of chance and betting nationwide. However, the bill has not yet been reviewed by the Senate and, therefore, is not in effect in the country.
Regarding sports betting, there was a clear government interest in its regulation due to the potential increase in revenue, especially considering the forecast for high licensing fees, in the range of millions of reais, for the exploitation of the activity in a properly regulated environment. In the case of sports betting, the Ministry of Finance estimates revenue of around US$ 400 millions solely from sports betting sites in 2024.
Difference between sports betting and games of chance
Furthermore, there is a distinction between sports betting and games of chance. In the former, individuals can follow the outcome to determine if they won or lost, such as if the team they believed in and bet on emerged victorious. Additionally, at the time of placing the bet, it is possible to know the potential profit in the event of a favorable outcome. These are known as fixed-odds bets, as outlined in Article 29 of Law No. 13,756/2018.
In contrast, the "jogo do aviãozinho" and similar games depend on an algorithm unknown to the bettors. In games of chance, generally, there is no way to verify how a result was reached, unlike sports betting, where it is possible to check the outcome.
In games like the "jogo do aviãozinho" or even in a physical or digital casino's roulette, it becomes impossible to determine if the venue owners or algorithm developers made changes to favor themselves. In many cases, bettors cannot even determine the appreciation of the money spent.
Where do lotteries fit in?
Legalized in 1967, lotteries are considered a monopoly of the Brazilian state, as per Article 1 of Decree-Law No. 204/1967. "The exploitation of lotteries, as an exceptional derogation from criminal law norms, is an exclusive public service of the Union, not subject to concession and only permitted under the terms of this Decree-Law." Following a 2020 ruling by the Supreme Federal Court (STF), states were also authorized to operate their lotteries at the state level.
One specificity of lotteries is the redistribution of profits for other social purposes, such as education, health, and security, due to the state's involvement in the activity. The law establishes "applications of a social and medical assistance nature."
Additionally, fixed-odds bets, legalized with the 2018 law, were created as a lottery modality under Article 29 of this law and can also be operated by state lotteries.
In some states, such as Paraná, this regulation is more advanced than at the federal level. Recently, the state of Paraná started offering and operating its own lottery, Lottopar, characterized as a state agency. Lottopar is responsible for the exploration, administration, and oversight of lotteries and bets in Paraná. Law 20,945/2021, which created Lottopar, allows the state agency to directly execute or delegate, through permission or concession, lottery and betting activities.
The exploration of regulated bets allows the accreditation of companies that can operate this modality in an organized manner supervised by the state. The concession, through accreditation of multiple concessionaires in a competitive environment, will be for a period of five years, extendable for an equal period.
Source: JornalJurid
