JUE 25 DE JULIO DE 2024 - 09:48hs.
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Senate Committee postpones vote on the sports betting Bill until Wednesday

The Senate Economic Affairs Committee postponed until today (22) the vote on the report by Senator Angelo Coronel that regulates sports betting in Brazil. The decision took into account the request for views by members of the collegiate. In the document, the rapporteur reduced the fee to be paid by companies to 12%, with the right to 3 brands and grants R$30 million (US$ 6m) for five years. Senate’s president Rodrigo Pacheco said there are no conditions to vote on the matter in Plenary today (22) and postponed it until next Tuesday (28).

The rapporteur of Bill 3626/2023 in the Economic Affairs Committee (CAE), senator Angelo Coronel, presented his text in a long explanation of the topics covered. The document reduces the fee to be paid by companies from 18% to 12%, with the right to have up to 3 brands, with a grant of R$30 million (US$ 6m) for five years. The text of the law also allows the operation of online casinos and other non-sports virtual games.

Furthermore, it defined that the income tax for bettors will be 15%, to be calculated on the capital gain over the course of a year, with operators being responsible for sending an income report at the end of the year to each user.

Angelo Coronel did not exempt Loterias CAIXA from paying for the grant and that it may grant the lottery network the operation of sports betting in its name, as long as it applies for a license.

He also maintained permission for advertising and sponsorships by bookmakers, both in the media and in stadiums and on club shirts in any sporting modality.

The text also determined that only companies licensed by the Central Bank of Brazil will be able to offer financial transaction services, but only to sports betting houses that have applied for licenses with the Ministry of Finance.

In the document, the rapporteur defines that sports betting houses operating in Brazil will have six months to adapt to the provisions of the law once it is sanctioned.

Recipe sharing

According to the text, 88% goes towards funding and maintenance expenses for the lottery operating agent and other betting games. The remaining 12% is distributed according to the following percentages:

36% for sport, being:

  • 22,2% to the Ministry of Sports;
  • 7,3% for clubs and athletes in return for the use of brand and image;
  • 2,2% for the Brazilian Olympic Committee (COB);
  • 1,3% for the Brazilian Paralympic Committee (CPB);
  • 0,7% % for the Brazilian Club Committee (CBC);
  • 0,7% for the sports departments of the States and the Federal District;
  • 0,5% for the Brazilian School Sports Confederation (CBDE);
  • 0,5% for the Brazilian Confederation of University Sports (CBDU);
  • 0,3% for the Brazilian Committee of Paralympic Clubs (CBCP); and
  • 0,3% for the Brazilian Master Sports Committee.

28% for tourism, being:

  • 22,4% for the Ministry of Tourism; and
  • 5,6% for the Brazilian Agency for International Tourism Promotion (Embratur).

14% for public safety, being:

  • 12,6% to the National Public Security Fund (FNSP); and
  • 1,4% for the Integrated Border Monitoring System (Sisfron).

10% for education, being:

  • 5,5% for public secondary technical schools; and
  • 4,5% for public preschool, primary and secondary school students.

10% social security;

1% for the Ministry of Health to apply to measures to prevent, control and mitigate social harm arising from gaming in healthcare areas;

0.5% for the following civil society entities:

  • 0,2% for the National Federation of Associations of Parents and Friends of the Exceptional (Fenapaes);
  • 0,2% for the National Federation of Pestalozzi Associations (Fenapestalozzi); and
  • 0,1% for the Brazilian Red Cross.

0.5% to the Fund for the Equipment and Operationalization of Core Activities of the Federal Police (Funapol).

States and DF

Senator Angelo Coronel included 22 amendments to the original text. One of them includes a specific chapter on the exploitation of lotteries by the states and the Federal District. According to the change, the rule only applies to lottery modalities provided for in federal legislation.

According to the amendment, the operation of lotteries by states and the Federal District can be carried out through concession, permission, authorization or specific regulation, in compliance with federal legislation. The same economic group or legal entity can have only one concession and in only one state or the Federal District.

Lottery sales and advertising by states or the Federal District — carried out in physical, electronic or virtual media — must be restricted to people who are or live in the territory of each entity. “Multijurisdictional exploitation” of the service is prohibited. States and the Federal District must account for the resources applied to the respective courts of auditors.

After more than five hours of meeting, with some questioning the report presented by Coronel, senators Carlos Portinho, Eduardo Girão and Damares Alves asked to see the matter, with the last two stating that a week was needed for the analysis.

The president of the Commission denied the long deadline and ordered the CAE to meet again this Wednesday (22), at 10:30 am, to vote on the matter, having given only 24 hours for analysis by the senators' advisors.

Voting in Plenary affected

Due to the request for views, the president of the Senate, Rodrigo Pacheco, stated that there are no conditions to vote on the matter in Plenary this Wednesday (22). He intended to include the Bill on the Agenda of the day, but had to postpone it until next Tuesday (28).

Source: GMB