The Senate discussed, this Tuesday, the 21st, the regulation of sports betting. The text was presented by Senator Ângelo Coronel (PSDB-BA), discussed in the CAE – Economic Affairs Committee and will be voted on next Wednesday, the 22nd.

The decision was contested by Senator Eduardo Girão (Novo-CE). A period of at least one week was requested to analyze the report and compare it with the material approved by the sports committee. According to Girão, approval before this period “puts the mental health of Brazilians and football itself at risk.”

The urgency in voting on the material had been approved by the Sports Committee and was maintained.

In this news, we detail the session, which was marked by discussions on responsible gaming, requirements to operate and changes approved/rejected through amendments.

Voting was marked by requests for extension of the deadline

Senators opposed to the request for urgency in the vote stated the need for more time to read the report and understand which changes were approved (or not) by the rapporteur.

At the time of the Senate session, the report had not been presented, something that, in the view of senators like Girão, makes it difficult to carefully analyze the material. According to the senator, the text presented by Coronel had “a series of changes with what was agreed upon in the Sports Committee.”

Senators in favor of the vote emphasize that the activity is already being carried out by Brazilians and that it is important to move forward with the agenda so that guidelines are applied as soon as possible in the market. This would increase security measures for bettors.

Online Casino Games Discussed

Carlos Portinho (PL-RJ) seemed in favor of the progress of the vote on sports betting, but expressed doubts about the inclusion of online casino games in the text. In his view, the material deserved specific legislation.

The bill’s rapporteur confirmed that these virtual games will remain in the betting bill. According to Ângelo Coronel, what makes the separation difficult is the fact that betting houses also operate online casinos — and that these games represent a good portion of the companies’ revenue.

Responsible gaming and advertising

In the rapporteur’s view, sports betting has always existed in the daily lives of Brazilians, but without any type of control parameters to mitigate the effects of compulsive gambling.

Responsible advertising measures were discussed, such as:

• Any advertising material linked to bets must have rating warnings. Children and adolescents are excluded, in all forms, from this type of material;
• Advertising is prohibited in educational institutions, both basic and higher education;
• Despite the attempt to limit the broadcast times for betting advertising, the amendment was not accepted by the rapporteur.

There will be no changes to the display of sports betting brands on football shirts and stadium billboards, as is currently done.

The rapporteur said he had spoken to a number of legislators and understood that this type of advertising does not pose a risk to the general public.

Regarding security measures and Responsible Gaming, the report pointed out that operators must continue to require strict identity verification processes , such as facial recognition and confirmation through alternative channels.

In Coronel’s view, verification is important, including to identify people under 18 who try to open accounts with false data.

Only accounts based in Brazil will be able to receive earnings

According to the text, only bank accounts based in Brazil will be able to receive the prize amounts paid by betting houses.

On the other hand, only Brazilian financial institutions will be authorized to make payments.

The measure could discourage bettors from moving to unregulated, i.e. illegal, betting houses.

At the same time, there are questions about deposits and withdrawals with cryptocurrencies – an action that has become popular in recent years, especially with the arrival of betting houses specialized in this payment method.

Brazilian companies will have priority in licensing

As previously discussed, only companies headquartered in Brazil may apply for a license to operate. The term for the exploration of the activity is 5 years and the payment of the Grant must consider a limit of up to 2 commercial brands explored by Legal Entity (PJ).

Companies that choose to maintain their operations only abroad, but offering bets to Brazilians, will be prevented from paying prizes to bettors, which may be seen as a disincentive for those who wish to look for illegal brands.

According to the rapporteur, Brazilian companies will have priority in requesting the license.

No person related to SAFs (Sociedade Anônima de Futebol) or sports entities may have a stake in betting companies. Family members of these people will also be prohibited from involvement in sports betting.

Another point highlighted was that companies of the MEI (Individual Microentrepreneur) type will not be able to offer sports betting services. In the rapporteur’s view, the revenue ceiling is small for the amount moved with the activity.

What changes?

Betting on sporting events was prohibited in Brazil until 2018, when Law 13.756/18 was passed, legalizing the market. The legislation gave a two-year deadline, extendable for another two years, for rules to be created to regulate the practice.

The issue has not progressed in recent years. After taking office as president in 2023, President Luiz Inácio Lula da Silva decided to regulate betting through MP 1,182 and PL 3,626, both authored by the Presidency of the Republic.

UNDERSTAND: When the PL was approved in the Chamber, it absorbed a large part of the text of the MP, adding other measures such as the inclusion of online casinos in the regulations.

Deputies and senators preferred to move forward with the issue through the PL, not establishing a committee to evaluate the provisional measure.