As we have commented in this column, the Federal Government published a provisional measure that amended Law No. 13,756/18 and kicked off the regulation of sports betting in Brazil.

A provisional measure is a legislative instrument used in Brazil to allow the Executive Branch (President of the Republic) to adopt measures with the force of law in situations of urgency and relevance.

These measures are temporary in nature and can be implemented without the need for the traditional legislative process, which involves discussion and voting in both houses of the National Congress (Chamber of Deputies and Federal Senate).

See also: Understand the Approval of the Bill and the Impacts on Regulation

The provisional measure in question came into effect immediately and was submitted to the National Congress, which has a total period of 120 days to vote on it, otherwise it will lose its effectiveness. Immediately after its publication, the provisional measure received 244 amendments , which was already an indication of the debate that would take place before its vote.

It turns out that, even during the deadline for its voting, bill no. 3,626/2023 was approved in the Chamber of Deputies, which, in the same way, amends Law no. 13,756/2023 to regulate “the operation of the fixed-odds betting lottery by the Union”.

Today, the provisional measure is in force and the text in question is still only a bill, therefore, it does not come into force before the conclusion of the legislative process.

Therefore, in this text, we will highlight the main changes brought by the bill that impact bettors.

Authorized Betting Sites

The first of these concerns where to bet . Contrary to the government’s proposal in Provisional Measure 1182/23, the Bill stipulates that only companies established in accordance with current legislation in Brazil, with headquarters and administration located in the national territory, will be able to request authorization, with foreign companies being excluded.

The regulation that will be published will establish other requirements , for example, the stipulation of the minimum value of the share capital, the need for prior knowledge of the partners, among others.

Ban on gamblers

The second point is related to the profile of bettors . The following prohibitions on betting remain in the bill:

• minors,
• public servants responsible for regulation
• people who can exert influence over the sport (such as athletes, coaches, managers, referees, among others).

The text guarantees the protection of the bettor based on the Consumer Protection Code and access to information on how bets work, withdrawal of prizes, etc.

Consumer protection and advertising rules

We also have greater clarity regarding advertising . Regulatory standards may establish restrictions on the times, programs, channels and events in which betting advertising may be broadcast, with a view to avoiding its exposure to minors.

In such circumstances, communications companies, as well as internet providers and websites, must remove the advertisement from circulation upon notification to the Ministry of Finance.

These advertising campaigns may not, furthermore, insinuate or allow the interpretation that betting can replace employment, resolve financial dilemmas, constitute a source of additional income or be considered a form of financial investment.

The content of these advertisements must not violate Brazilian cultural beliefs or traditions, particularly those that oppose gambling.

Within the scope of the provisions relating to commercial advertising, the following practices will be prohibited:

• advertising by companies without authorization to operate lotteries;
• disseminating unfounded claims about the odds of success or potential winnings that bettors may expect;
• presentation of the betting activity as socially attractive;
• the use of statements by well-known personalities and celebrities insinuating that gambling contributes to personal or social success.

Taxes

Read also: What are the legal implications of not declaring income tax on sports betting in 2023?

Regarding the bettor’s income tax , 30% of IRPF will be charged on the portion of the prizes that exceeds the exemption range, however the legal text does not take into account the values ​​of lost bets , which could impose great burdens on bettors.

The changes were not that big for the bettor, but we could see a greater initiative in consumer protection. While we do not know what will happen, we continue to monitor closely and hope to have a regulated betting market in Brazil as soon as possible.