Bets: Chamber approves project that regulates betting – 12/22/2023 – Market

The Chamber of Deputies approved in the early hours of this Friday (22) the project that regulates fixed-rate betting, such as so-called bets, and returned the possibility of online casinos to the text. The text is subject to sanction or veto by the President of the Republic.

To try to overcome resistance from the evangelical and Catholic benches, the project’s rapporteur, Adolfo Viana (PSDB-BA), agreed with the change that had been made by the Senate and expressly prohibited the installation of physical machines, such as hunting machines. nickels.

The basic text of the project was approved by 292 votes to 114 in the last session of the year — in the early hours of the last day before the parliamentary recess. Some of the deputies participated in the vote remotely.

Faced with appeals from the evangelical bench for the vote to be postponed until February, the president of the Chamber, Arthur Lira (PP-AL), defended the text.

“If we simply don’t vote on the regulations, will games cease to exist? Will people stop playing? Bets will stop operating, sponsoring football teams, television programs, tournaments and events? No.”

The project provides for a 12% tax rate on the betting houses’ revenue, minus the payment of prizes. Bettors must pay 15% per year when the amount received is above R$2,112 — referring to the Income Tax exemption range.

In the proposal sent to Congress, the federal government defended a rate of 18% for companies and 30% for users on the value of the premium.

The text classifies “real sports-themed” events and “virtual online gaming” events as fixed rate bets — a device that includes games, or eSports, and opens up opportunities for gambling in a virtual environment.

In a session on the 12th, the senators initially approved the proposal with permission for virtual casinos. But, after voting on the text, the opposition managed to approve an amendment by PL leader, Carlos Portinho (RJ), excluding the permission.

The opposition in the Senate also managed to implement another change, which prevented the sale of fixed-rate bets on physical devices — now maintained by federal deputies at the request of the bible bench.

The proposal has undergone several changes since it was presented by the Ministry of Finance as an MP (provisional measure). Given the clash between the two Houses over the processing of MPs, the topic began to be discussed via bill.

During the proceedings in the Chamber of Deputies, for example, the granting of R$ 30 million was stipulated for a period of three years, the funds for ministries controlled by the center (Sports and Tourism) were boosted to the detriment of the social area and the device was created for online casinos.

In the Senate, authorization was extended to five years and the project now includes Health and Defense in the collection pool. The companies’ tax rate fell from 18% to 12% and, in return, a specific percentage was created for gamblers, of 15%.

Viana maintained the grant period defined by the senators (5 years instead of 3), in addition to the rates for operators and winners.

Bets were authorized through a bill at the end of 2018, still under the Michel Temer (MDB) government. After this stage, the topic would need to have been regulated by the Executive, which did not happen during the four years of Jair Bolsonaro’s (PL) government.

Currently, sports betting companies that operate with the national public operate in a gray area of ​​legislation: headquartered abroad, but with Brazilian users and without paying taxes in the country.

The legal limbo allowed the proliferation of companies in the country, even without specific legislation or supervision, and contributed to the emergence of corruption scandals — such as the one that culminated in the arrest of a criminal organization for manipulating the results of the Brazilian Championship.

In fixed odds betting, the bettor on a football game, for example, wins if he guesses the final result or some condition of the match, such as penalties.

The regulation of sports betting is the last item in the package sent by the Ministry of Finance to Congress to increase revenues in 2024 and reduce the deficit in public accounts. This Wednesday (20), the Senate approved the provisional measure that changes the rules for ICMS benefits.

Fernando Haddad’s (PT) list also included the tax reform, enacted this Wednesday, and the bill on the taxation of resources in exclusive funds (used by the super-rich) and offshore funds (based abroad).

The project that cuts JCP tax benefits (interest on equity), remuneration paid by companies to shareholders, was included in the ICMS MP, and also approved this Wednesday by the Senate.

As shown by Sheetthe department was positively surprised by the result of the preliminary call for companies to express interest in participating in the betting market, with more than 130 demonstrations of intention.

Sports betting will have its management divided between Sports and the Ministry of Finance, which will be responsible for revenue. The secretary of the matter must be lawyer José Francisco Manssur, who is part of Haddad’s team.