The amendment 33 of the Rio de Janeiro deputy Mr. Otavio Leite (PSDB-RJ) authorizes the federal Executive Branch to institute lottery modality by fixed quota on the result and events associated with sports competitions of any nature linked to legally organized entities, as long as it is available the appropriate technology and are exempt from the Income Tax the prizes to the bettors of the modality of lottery by fixed quota that treats the caput of this article.
The PM of the Lotteries was published in August as a new version of MP 841/2018, published in June and no longer valid. The new text was born out of an articulation of the Ministries of Culture and Sports, after pressures from entities of both sectors, since the previous MP reduced the onlending of lotteries to these areas to increase the resources of the National Public Security Fund FNSP). The government ensures that the PM of the Lotteries will guarantee the annual transfer of about R$ 1 billion (US$ 270m) for public safety, R$ 630 million (US$ 170m) for sports and R$ 443 million(US$ 120m) for culture.
The president of the committee that analyzes the PM of the Lotteries, Deputy Evandro Roman (PSD-PR), granted a collective view of the report, presented on Wednesday afternoon (31) by Senator Flexa Ribeiro (PSDB-PA). The discussion and voting of the MP's report is scheduled for next Tuesday (6), at 2:30 p.m.
According to Flexa Ribeiro, members of the government, specialists in the sectors involved, and senators and deputies were heard. He pointed out that the holding of a public hearing, promoted by the commission the previous day (30), was important for the preparation of the report. “The report, which has 65 pages, is very important for our country,” said Flexa Ribeiro.
Culture and public safety
Flexa reported that 41 amendments were introduced, of which 12 were used, in whole or in part. The PM determines, for example, that the FNSP receives 9.26% of the lottery income in 2018. From next year, the percentage drops to 6.8%. In the report, Flexa proposes 11.49% this year and 2% from 2019.
The National Fund for Culture (FNC), according to the PM, will be entitled to 2.92% of the onlending of lotteries in 2018. As of next year, this share would fall to 2.91%. As suggested by Flexa, the transfer will be 1%, both for this year and for next year.
The PM also reduces the amount destined to the payment of prizes to the bettors. From 2019, the percentage drops from 50% to 43.79%. In the report, however, the percentage stays at 37.61% in 2018 and rises to 55% from next year.
Sports and social entities
The PM also states that the participation of the Ministry of Sports in the collection of lotteries will be 3.5% in 2018 and 3.53% from next year. In the Flexa report, the percentage will be 10% in 2018, falling to 3.1% from 2019. By the text sent by the government, the quota of the Brazilian Olympic Committee (COB) is set at 1.63% by 2018 and 1.73% from next year. In the Flexa report, the percentage of 1.63% does not change since 2019. The Brazilian Paralympic Committee (CPB) stands at 0.96% - a percentage that remains from next year.
Two social entities are also benefited by the PM: each year, the income from two competitions of the Sports Lottery must go to the National Federation of Associations of Parents and Friends of the Exceptional (Fenapaes) and the Red Cross. In the report, Flexa allocated the income of three contests per year to social entities, including the National Federation of Associations Pestalozzi (Fenapestalozzi) as beneficiary.
The rapporteur also deals with percentage distribution of proceeds from the prognostic lottery collection, benefiting areas such as public safety, health and the National Fund for the Rights of Children and Adolescents. The rapporteur also proposed changes in betting rules associated with horse racing results, and suggested the introduction of a lottery modality called fixed-betting bets - which may occur on a physical or electronic basis.
Education
For the state, district and municipal departments of education, Flexa suggests the transfer of 1.53% of the proceeds from lottery collections. It is estimated that at least R$ 200 million (US$ 54m) per year will be earmarked for the benefit of schools that achieve the results proposed by the Ministry of Education.
According to the rapporteur, the transfer to public education will come from reducing the percentage allocated to the costing of the expenses of the operator agent. The participation of Caixa Econômica in the collection of competitions for numerical forecasts will be 17.6%, "which will continue to be higher than the world average for this type of lottery."
Of the total collection of the lottery modality by fixed quotas mentioned in the caput of this article, 70% will be destined to the award, 16% for expenses of administration and cost of administration, 3% to the National Penitentiary Fund and 11% to the National Public Security Fund.
Source: GMB
