The bill that deals with the regulation of betting in Brazil should be voted on in the plenary of the Federal Senate next week .

Approved this week by the Economic Affairs Committee (CAE) , Bill 3,626 may have important changes to the text that had been approved by the Chamber when passed through the Senate.

The report presented by Senator Angelo Coronel, rapporteur of the project in the CAE, brings amendments with changes related to topics such as taxation of companies, granting, rules for advertising and taxes charged to bettors.

Senators may or may not approve the amendments proposed in the report when the matter is voted on in the plenary.

Aposta Legal Brasil listed the main proposed changes that could directly affect the market and the bettor’s pocket.

Changes for the bettor

One of the amendments proposed in the report adds a new restriction for gamblers. People who are prohibited from betting include those diagnosed with gambling addiction, provided there is a medical report from mental health professionals.

Another change is the determination that betting houses must adopt bettor identification procedures, such as facial recognition or confirmation via alternative communication channels.

“We understand that the proposed measures provide greater security in accessing bets and can be an important instrument to prevent fraud and, especially in the case of facial recognition, to prevent bets by minors, especially children,” he highlights.

The text also reduces the income tax that will be charged to the bettor to 15%, which will be calculated on the annual net profit.

UNDERSTAND : In the version approved by the Chamber, taxation on bettors is similar to that charged on lottery prizes: 30% on the prize, charged directly at source.

If the amendment is accepted, bettors will pay taxes considering the positive result of bets made each year, after deducting betting losses.

The tax will be calculated annually and paid by the last business day of the month following the calculation.

The text also states that the bettor has the right to claim prizes or refunds within 90 days.

The amounts of unclaimed prizes will be directed 50% to the Student Financing Fund (Fies) and 50% to the National Fund for Public Calamities, Protection and Civil Defense (Funcap).

Requirements for companies

The report approved by the CAE contains amendments that prohibit partners or controlling shareholders of betting companies or spouses and blood relatives up to the second degree from having any direct or indirect participation in a football corporation or sports organization.

Partners or shareholders of betting operators are also not permitted to be part of financial and payment institutions that process fixed-odds bets.

Another amendment proposed by the rapporteur establishes that the operator must keep a record of all operations, including bets, prizes, withdrawals and deposits.

Taxation and granting

The report extends the operating period granted to companies after payment of the concession fee from 3 to 5 years. The text also states more clearly that the value of the concession fee must be a maximum of R$30 million.

One of the main changes was the reduction of the rate charged on companies’ Gross Gaming Revenue (GGR), from 18% to 12%.

The text establishes that the distribution of resources will be done as follows:

• 10% for the education area
• 14% for the area of ​​public safety
• 36% for the sports area
• 10% for social security
• 28% for tourism
• 1% for the Ministry of Health, for measures to prevent, control and mitigate social damage resulting from gambling
• 0.5% for civil society entities
• 0.5% for the Fund for Equipping and Operationalizing the Federal Police’s Core Activities (Funapol)

Other changes

The report also states that sporting events involving youth categories or events involving exclusively underage athletes cannot be the subject of bets.

A reservation is also made about bets made with the purpose of securing advantages in the midst of match-fixing schemes .

In this case, bets are considered void and there may be a suspension of payment on investigated bets.

With regard to advertising , there are amendments establishing the mandatory use of rating warnings and prohibiting actions in school environments and educational institutions.

Furthermore, the report allows Caixa Econômica Federal to sell fixed-odds bets at physical points of lottery licensees.