Lula sanctions law regulating sports betting

Lula government

Mediation taxes companies and bettors and defines exploitation rules

President Luiz Inácio Lula da Silva partially sanctioned Bill No. 3,626 of 2023, which regulates fixed-odd sports betting, the so-called bets.

The measure, published this Saturday (30) in an extra edition of the Official Gazette of the Union, taxes companies and bettors and defines rules for operating the service, in addition to determining the sharing of revenue.

Fixed odds sports bets are those in which the bettor knows exactly what the rate of return is at the time of the bet. According to Palácio do Planalto, with the new law, virtual bets, physical bets, real sports-themed events, gambling online and virtual gaming events online.

The text expressly establishes the charging of 15% Personal Income Tax (IRPF) on the net value of the prizes obtained. The law also determines that, of the proceeds collected after deductions, 88% will be used to cover the costs and maintenance of the lottery operating agent.

The remaining 12% will be allocated as follows: 10% for the education area; 13.6% for the area of ​​public security; 36% for the sports area; 10% for social security; 28% for the tourism area; and 1% for measures to prevent, control and mitigate social harm arising from gaming, in health areas.

“The presidential sanction is also important because it meets the Brazilian government’s objective of increasing revenue through the regulation of sports betting, contributing to the goal of zero deficit”, highlighted the Palácio do Planalto, in a statement.

Also according to the statement, through regulation by the Ministry of Finance, requirements and guidelines will be established for the issuance and maintenance of authorization to explore fixed-odd betting, subject to proof of implementation of policies that include prevention of money laundering, the financing of terrorism and the proliferation of weapons of mass destruction; and betting integrity and prevention of match-fixing and other fraud.

The law also determines that the amounts of unclaimed prizes will be returned by 50% to the Student Financing Fund (Fies) and by 50% to the National Fund for Public Calamities, Protection and Civil Defense (Funcap), subject to the financial and budgetary programming of the Federal executive branch.

*With information from Agência Brasil

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