The Plenary of the Chamber of Deputies approved Provisional Measure (PM) 846/18 yesterday’s evening, which redistributes funds from federal lotteries to the National Public Security Fund (FNSP), whose operation is reformulated. The conversion bill, authored by Senator Flexa Ribeiro (PSDB-PA), creates a new lottery by fixed quota, designed to frame bets on sports results conducted over the internet.
The PM 846 states that fixed odd betting or sports betting must allocate 2.5% of the collection to the National Public Security Fund (FNSP) when it is made by physical ways and 1% if carried out online; which would mean onlendings millionaires to area coming from this new market that will open.
The MP determines a period of two years, extendable by two others, so that the Ministry of Finance establishes the rules for authorization of concession to the operators of the modality. The gaming market in electronic form about real sports events, where, on the occasion of the bet, the bettor knows the amount of the prize to be won if he hits the prognosis, is estimated at R$ 4.3 billion (US$ 1.15bn) in Brazil.
At the suggestion of SEFEL, a proposal is presented that aims to make feasible the exploration of this new lottery modality. Given that it is necessary to channel this lottery activity to the rules of Brazilian law, the prizes must be higher than traditional lotteries.
"There is a request from Sergio Moro, the future Minister of Justice and Public Security, on a provisional measure on security that is about to expire. If we do not put it on the agenda now, Moro begins without resources next year to deal with much of what he intends to do, which is the fight against corruption and organized crime," said President-elect Jair Bolsonaro.
According to the PM, the money raised by the federal lotteries would be distributed as follows: National Security (9.26%), National Culture Fund (2.92%) and sports area (4.33%). Other sectors are also covered with the resources, and a part goes to the Income Tax. "The lotteries are sliced, a percentage goes to each place, and now would have a percentage more precisely for the issue of public safety in Brazil," said Bolsonaro.
According to the new distribution proposed for existing lotteries, and based on reference data of the 2016 collection, released by the state-owned bank Caixa Econômica Federal (CEF), the Student Financing Fund (Fies) loses about R$ 900 million (US$ 240m).
The Ministry of Public Security (FNSP and National Penitentiary Fund - Funpen) will receive about 9.4% of the gross collection (25.8% of net) of the existing lotteries. In the values of 2016, this would give about R$ 1.2 billion (US$ 320m) (without update) from 2019 and without considering Lotex, the instant lottery not yet implemented.
Social Security continues with the highest single percentage among the beneficiaries of the lottery collection (16.8% of the gross). In 2016, the gross collection of all lotteries administered by Caixa was R$ 12.8 billion (US$ 3.4bn). Of this total, R$ 6.1 billion (US$ 1.6bn) was distributed to the areas of sports, culture, social security, education, health and public safety.
Lotex, according to government intentions, must be operated by private initiative through a grant for about 15 years. However, in the auctions launched in 2017 there were no interested parties, even though the minimum bid has decreased.
The Plenary approved the PCdoB's emphasis on Provisional Measure 846/18 and withdrew from the text a device that directed resources from unclaimed lottery prizes to a fixed quota for payment of federal public debt. An agreement among the political parties provides for the regulation, in another project, of directing these resources to the Student Financing Fund (Fies), as it does with other existing lotteries.
In the House Plenary, Deputy Bacelar (Can-BA) recently defended the approval of Provisional Measure 846/18, which establishes new rules for the distribution of money collected from federal lotteries. One of the changes increases the amount of resources destined for the area of public security, going from around R$ 400 million (US$ 106m) last year to more than R$ 1 billion (US$ 266bn) in 2019.
Bacelar recalled that PM 846/18 replaces PM 841/18, whose analysis has not advanced in the Chamber of Deputies for predicting loss of resources for education, sport and culture, areas also benefited by the collection of lotteries.
"If we legalize the gaming activity in Brazil, we will have money for public safety and for various areas. This will generate 500 thousand jobs in the country, oxygenate culture and leisure. The Brazilian continues to bet [in illegal games], but we can not raise funds," he said.
Source: GMB
