Chamber regulates sports betting and releases online casinos

The Chamber of Deputies approved in the early hours of this Friday (22) the project that regulates sports betting, the so-called bets (PL 3626/23)). The president of the Chamber, Arthur Lira (PP-AL) managed to approve the urgent request late on Thursday night (21).

The approved text reincluded online casinos, taxes companies and bettors, defines rules for operating the service and determines the sharing of revenue, among other points. With final approval in both legislative houses, the project goes to President Luiz Inácio Lula da Silva (PT) for approval.

The evangelical bench obstructed the vote and asked for the proposal to be deliberated in February of next year, so that the text could be improved, and not pose risks to the Brazilian population such as gambling, addiction and corruption. “This government and PT project only has the interest of collecting money from other people’s misfortunes”, said one of the deputies during the session.

Lira countered the criticism by defending the need for regulation. “We are trying to regulate, be serious, avoid, how can I say, money laundering, hidden money. Everything has to happen within the law.”, said Lira.

The approved text reestablished betting authorization for virtual online gaming events, so-called online casinos, which had been removed from the text by senators.

Evangelical deputies allied with the opposition tried to remove this point during the highlights vote, but were defeated. The maintenance of online games was voted in favor by 261 deputies against 120.

The proposal’s rapporteur stated that the exclusion of online games “would end the project”. Deputy Sóstenes Cavalcante (PL-RJ) assessed that the measure circumvents the ban on bingos and casinos in force since 2004 by allowing virtual play. “Bets are bets on a game between Flamengo and Vasco, which has logic. With bingos, the only one who wins is the bank,” he said.

The government officials worked to approve the text, after pressure from the federal government’s economic team, as the amounts collected will help the government meet the fiscal target of zero deficit scheduled for 2024.

Other points of the project

The proposal determines the sharing of revenue by sports bets. There will be a 2% contribution to Social Security on the proceeds from the collection. The resources will be divided between education (1.82%), sport (6.63%) and tourism (5%).

Companies will be able to keep 88% of gross revenue for costs. The 12% will be divided between education, public safety, sport and other areas.

It was also established the collection of 15% Personal Income Tax (IRPF) on the net value of the prizes obtained. The charge will be made for the total number of bets per year, on the amount that exceeds the first range of the IRPF table (R$ 2,112). Companies will be taxed at 12%.

The following will be prevented from playing, among others:

• under 18 years old;
• people diagnosed with gambling disorders;
• people with influence over sporting events or the gaming platform;
• sports directors, coaches, referees, agents and athletes.

Authorization

Bets can only be operated by companies authorized by the Ministry of Finance, which have headquarters and administration in the national territory. They must demonstrate experience in games and other technical requirements established by the Executive.

In addition, companies must have a Brazilian member on their board who holds at least 20% of the share capital. The controlling shareholder cannot act directly or indirectly in a professional sports organization, nor be a director or linked to financial institutions that process bets.

Interested companies must pay up to R$30 million for the right to exploit up to 3 commercial brands for up to five years.

The project obliges companies to adopt practices to serve players, combat money laundering, encourage responsible gambling and prevent fraud and bet manipulation. With information from Agência Câmara.