The Plenary of the Federal Senate approved on the evening of last Tuesday (12) Bill No. 3,626, which deals with the regulation of sports betting.

The approval was made subject to three highlights, two of which were approved by the senators.

The approved highlights remove from the text online casinos and the possibility of installing equipment in physical establishments intended for the sale of fixed-odds bets.

The text used as a basis for the vote was the report presented to the Economic Affairs Committee (CAE) by Senator Angelo Coronel. Before the Senate considered it, the rapporteur approved amendments that had been proposed by the parliamentarians.

As it brings fundamental changes to the text, the bill now returns to the Chamber of Deputies before being sanctioned.

Exclusion of casinos

The bill was approved despite criticism from the opposition in the plenary. The senators against the measure were:

• Flavio Bolsonaro
• Astronaut Marcos Pontes
• Roger Marinho
• Damares Alves
• Carlos Portinho
• Carlos Viana
• Cleitinho
• Great Malta
• Flavio Arns
• Zequnha Marinho
• Izalci Lucas
• Eduardo Girao
• Wilder Morais
• Marcos Rogerio
• Esperidiao Amin
• Hamilton Mourão
• Eliziane Gama

“This project is of interest to tycoons. The government is under the illusion that it will raise funds, but in the very short term it will suffer from mental illness, public safety problems and for every real raised, it will spend three,” criticized Senator Eduardo Girão.

Despite being the first item on the agenda, the topic was only discussed after voting on twelve extra-agenda messages that were placed at the front.

“It’s a free-for-all, my friends. It’s the disgrace of the Brazilian family. It’s the casino, it’s blackjack. (…) The rule is manipulation. The profit of virtual gambling houses is 70%,” argued Senator Carlos Portinho.

He was the author of Amendment No. 139, which was approved by the majority of senators in the vote on the highlight.

The text establishes that fixed-odds bets that are regulated in the project are only related to real events, in which it is defined, at the time of placing the bet, how much the bettor can win in the event of a correct prediction.

The National Association of Games and Lotteries (ANJL) has published an official position against this change in the text. In the ANJL’s view, the removal of online casinos harms the country by leaving out of the law the possibility of significant tax collection.

“In addition, the lack of legal standards allows illegal websites to continue operating outside the rules established by the Ministry of Finance, the lack of supervision and insecurity for bettors,” he highlighted.

For the vice-president of the Brazilian Institute of Sports Law (IBDD), Mariana Chamelette, the withdrawal of casinos is frustrating for both the government and the market.

Physical equipment

The senators also approved Amendment No. 147 by a majority, which prohibits the installation or provision of equipment or other devices in physical establishments intended for the sale of fixed-odds bets in a virtual environment.

For Senator Eduardo Girão, the text of Senator Angelo Coronel’s report opened up loopholes for the installation of gaming machines in commercial establishments.

The rapporteur defended his project and criticized senators who were trying to “consent” the public.

“They’ve been saying that there will be casinos in bakeries, stores, and bars. That’s a fallacy. There’s no such thing as machines installed in physical locations. Anyone who wants to play won’t be able to resist picking up their cell phones in the comfort of their own home,” he emphasized.

Advertising

Another amendment that was voted on as a highlight prohibited the placement of advertising by betting houses in sports arenas. The highlight was rejected by the senators.

The text prohibited companies from sponsoring individual athletes, referees, members of professional and amateur technical committees in all sports.

Senator Jorge Kajuru argued that advertising for bets is a major source of income for television and many clubs. Angelo Coronel and Otto Alencar (PSD-BA) also spoke out against the highlight.

Taxation

The change made by the CAE, which reduced the tax on betting houses from 18% to 12% of Gross Gaming Revenue (GGR), was maintained.

UNDERSTAND: The text that now returns to the Chamber of Deputies also establishes a 15% tax on bettors, who were taxed at 30% in the previous text.

Two plenary amendments were accepted that equate the tax treatment of Fantasy Sport prizes with those of sports betting.

Furthermore, the rapporteur also approved an amendment that specifies that professional sports organizations that cannot have participation by members or shareholders of lottery operators are Brazilian.

Another approved amendment requires the Ministry of Finance to take measures to monitor the activity of betting customers in order to prevent gambling addiction.

In an amendment, rapporteur Angelo Coronel made some changes to the allocation of funds that will be raised from sports betting. It will be as follows:

• 10.0% for the education area, according to the act of the Ministry of Education
• 13.60% for the area of ​​public safety
• 36% for the sports area
• 10% for social security
• 28% for the tourism sector
• 1% to the Ministry of Health, for measures to prevent, control and mitigate social damage resulting from gambling in health areas.
• 0.50% divided between civil society entities
• 0.50% for the Fund for Equipping and Operationalizing the Federal Police’s Core Activities (Funapol).
• 0.40% for the Brazilian Industrial Development Agency.