DOM 19 DE MAYO DE 2024 - 19:37hs.
Changes in collection distribution

New Pelé Law reduces profits for sports betting operators and redistributes lottery funds

Brazil’s Chamber of Deputies approved this Wednesday (6) the bill that reformulates the Pelé Law, with changes in the distribution of the collection of prognostic lotteries and a reduction of 1 percentage point in the gross profit of sports betting operators. The text reported by federal deputy Felipe Carreras (PSB-PE) also prohibits the advertising of companies without headquarters in Brazil.

The Chamber of Deputies approved the Wednesday night (6), in the form of a substitute for the rapporteur, federal deputy Felipe Carreras (PSB-PE), Senate Bill 1153/19, which amends points of the Pelé Law.

Called ‘Lei Geral do Esporte’ (General Sports Law), the project reformulates sports legislation and makes important changes in points related to prognostic lotteries and fixed-odds betting in Brazil, redistributing part of the revenue and reducing the profitability of fixed-odds betting operators.

According to the text, there will be changes in the distribution of the collection of prognostic lotteries (Mega-Sena, Quina and others). Of the total that falls to the body responsible for Sport (currently the Special Secretariat for Sport of the Ministry of Citizenship), the text removes 1.13 percentage points to direct resources to the state secretariats of Sport, in proportion to the bets made in its territory, for application in Olympic and Paralympic school games.

The secretariats will have 1 percentage point more. The remainder will be divided between the Brazilian Sports Master Committee (CBEM), the Brazilian University Sports Confederation (CBDU) and the União dos Esportes Brasileiros (Brazilian Sports Union).

In the fixed-odds lottery, in which players place bets on specific results of matches, the text takes 1 percentage point from the operators’ gross profit and allocates the money to entities of the Olympic cycle (Brazilian Olympic Committee – COB and Brazilian Paralympic Committee – CPB ) and club aggregation entities (Brazilian Committee of Clubs – CBC, Brazilian Committee of Paralympic Clubs – CBCP, Brazilian Confederation of School Sports – CBDE and Brazilian Confederation of University Sports – CBDU).

In addition, sports betting operators without headquarters in Brazil will no longer be able to advertise in the country.

Source: GMB / News Chamber Agency