The Mixed Commission will vote on the report of Senator Flexa Ribeiro (PSDB-PA) for the so-called Lotteries Provisional Measure (PM) that had a collective view granted by the president, Congressman Evandro Roman (PSD-PR). The discussion and voting of the report is scheduled for today at 2:30 p.m. In case of favorable results, the PM will be analyzed by the Chambers of Deputies and Senators, which would open a firm possibility of having an approval of the Measure before the end of the year with the sports bets regulated in Brazil at the beginning of 2019.
PM 846 amends Provisional Measure No. 841 of June 11, 2018, which allocates resources to national public security through the restructuring of the National Public Security Fund and provides for the destination of proceeds from the collection of lotteries. It increased from 2.87% to 2.92% in 2018, and from 0.5% to 2.91% as of 2019, the percentage of collection of lotteries of numerical forecasts for the National Fund of Culture (FNC).
The Measure allocates to the mentioned fund 0.4% of the collection with Exclusive Instant Lottery (Lotex). It extends the participation of the Ministry of Sports in numerical forecasting lotteries from 3% to 3.5% in 2018, and from 0.66% to 3.53% as of 2019. It provides for the allocation of resources to the Red Cross and National Federation of Parents' Associations and Friends of the Exceptional (Fenapaes). And it establishes that the Court of Auditors of the Union will supervise the application of funds passed on to various beneficiary entities.
The government ensures that the Lotteries PM 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 (US$ 120m) for culture. 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, Ribeiro proposes 11.49% this year and 2% from 2019.
According to Flexa Ribeiro, members of the government, specialists in the sectors involved, and senators and deputies were heard. He stressed that holding a public hearing, promoted by the commission on October 30, was important for the preparation of the report. There, they gave their opinions and analysis specialists such as Pedro Trengrouse (Academic Coordinator of the course FGV/FIFA/CIES Executive Program- Improvement in Sports Management) and Alexandre Manoel Angelo da Silva (Secretary of Fiscal, Energy and Lottery Monitoring of the Ministry of Finance- SEFEL), among others.
Ribeiro reported that 41 amendments were tabled, of which 12 were used, in whole or in part. Among these amendments, appears the Nro 33 of the author of Otávio Leite. Amendment 32 authorizes the Federal Executive Branch to institute a fixed lottery mode (sports betting) on the result and events associated with sports competitions of any nature linked to legally organized entities.
Institution of lottery mode denominated fixed bets
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$ 1.16bn) in Brazil.
In the absence of a rule regulating this lottery niche, bets are placed on electronic sites hosted abroad, without the country collecting any cent of the amount of bets placed by its residents.
At the suggestion of SEFEL, a proposal is presented to make feasible the exploration of this new type of lottery, called fixed-stake bets. Given that it is necessary to channel this lottery activity to the rules of Brazilian law, the prizes must be higher than traditional lotteries.
It is worth mentioning that there is a complementarity between the different types of lotteries, since the fixed-betting lottery targets younger people, who will become the target audience for traditional lotteries in the future.
In the report, Chapter V refers to sports betting in this way:
CHAPTER V: FIXED QUOTA BETS
Article 29. A lottery modality is created, in the form of an exclusive public service of the Union, denominated fixed-quota bets, whose commercial exploitation will take place throughout the national territory.
§ 1º. The lottery mode dealt with in the caput consists of a system of bets related to real sports events, in which the bettor is defined at the time of betting, how much the bettor can win in the event of a successful outcome.
§ 2º. The fixed-quota bets lottery shall be authorized by the Ministry of Finance and shall be operated exclusively in a competitive environment and may be marketed in any commercial, physical and electronic distribution channels.
Article 30. The proceeds from the collection of the fixed-quota bets lottery shall be allocated as follows:
I - In physical environment:
a) eighty-two percent for the payment of prizes and the collection of income tax on the prize;
b) five tenths percent for social security;
c) three whole and five tenths of a percent for the FNSP;;
d) fourteen percent to cover expenses of costing and maintenance of the operating agent of this lottery type; and
II - In electronic ways:
a) ninety percent for the payment of prizes and the collection of income tax on the prize;
b) twenty-five hundredths percent for social security;
c) one whole and seventy-five hundredths percent for the FNSP;
d) eight percent to cover expenses of costing and maintenance of the operator agent of this lottery modality.
Single paragraph. The percentages for the prizes and costs of maintenance and expenses, provided for in items "a" and "d" of items I and II of the caput of this article, may vary, provided that the annual average meets the percentages established in such items.
Article 31. On the gains obtained with prizes resulting from bets on the lottery of fixed bets, there will be income tax in the form set forth in art. 14 of Law No. 4,506, dated November 30, 1964.
Article 32. The Inspection Fee due for the commercial operation of the lottery modality called fixed quota bets is instituted, which has as a generator the regular exercise of the police power referred to in § 2 of art. 29, and is allocated on a monthly basis.
§ 1º. The Inspection Fee covers all acts of regular police power inherent in the activity and shall be allocated according to the ranges of awards offered monthly in the form of Annex I.
§ 2º. The Inspection Fee shall be collected by the 10th of the month following the month of the distribution of the prize.
§ 3º. The Inspection Fee not paid within the period established in the legislation shall be increased by a fine of default and interest for late payment, in accordance with art. 61 of Law No. 9,430, of December 27, 1996.
§ 4º - The debts related to the Inspection Fee shall be recorded in Active Debt of the Union.
§ 5º. The value arising from the collection of the Inspection Fee shall be passed on to the Ministry of Finance unit responsible for supervising the commercial exploitation of the fixed-quota bets lottery.
§ 6º. The rate referred to in the caput will be monetarily restated, since that the value of the update does not exceed the variation of the official inflation index calculated in the period from the institution of the rate, to the first update, and from the last correction for the subsequent updates, at intervals of not less than one year, in the form of the Regulation.
§ 7º. Taxpayers of the Inspection Fee are legal entities that, under the terms of art. 29, to exploit the fixed-quota bets lottery.
Article 33. The communication, advertising and marketing actions of the fixed-quota bets lottery shall be guided by the best practices of corporate social responsibility aimed at the operation of lotteries, according to the regulations.
Article 34. The bettors lose the right to receive their prizes or to request refunds if their payment is not claimed within ninety days of the date of the first disclosure of the result of the last actual event object of the bet.
Single paragraph. The unclaimed prizes within the period established in the caput will be destined to the Single Account of the National Treasury for the use in the amortization and payment of service of the Federal Public Debt.
Article 35. In compliance with Law No. 9,613, dated March 3, 1998, the legal entity holding the authorization shall send information to the Financial Activity Control Council (COAF), pursuant to the rules issued by the Executive Branch, prevention of money laundering and terrorist financing.
Source: GMB
