Chamber of Deputies approved the legalization of sports betting in Brazil

After an express and public request by President-elect Jair Bolsonaro, the Plenary of the Chamber of Deputies approved MP 846, which brings new rules for the distribution of money collected from lotteries among different sectors and at the same time creates a new fixed-quote lottery , aimed at framing sports results bets carried out over the internet. Now the Measure is going to the Senate for its vote before the 28th.

The Plenary of the Chamber of Deputies tonight approved Provisional Measure 846/18, which redistributes federal lottery funds to also direct them to the National Public Security Fund (FNSP), whose operation is reformulated. The conversion bill, authored by senator Flexa Ribeiro (PSDB-PA), creates a new fixed-quote lottery, aimed at framing sports results betting carried out over the internet.

We recall that MP 846 provides that fixed-rate bets or sports bets must allocate 2.5% of their collection to the National Public Security Fund (FNSP) when they are made by physical means and 1% if done online; which would mean millionaire transfers to the area coming from this new market that will open up.

 

The MP determines a period of two years, extendable for another two, for the Ministry of Finance to establish the rules for granting authorization to agents operating the modality. The electronic games market on real sporting events, in which, at the time of the bet, the bettor knows the amount of the prize to be won if the prognosis is correct, is estimated at R $ 4.3 billion in Brazil.

At the suggestion of SEFEL, a proposal is presented that aims to make the exploration of this new lottery modality, called fixed-quote betting, feasible. Considering that it is necessary to channel this lottery activity to the rules of Brazilian legislation, the prize must be higher than traditional lotteries.

“There is a request from Sergio Moro, future Minister of Justice and Public Security, for an interim measure on an appeal for security that is about to expire. If we don’t put it on the agenda now, Moro starts without recourse next year to deal with a large part of what it intends to do, which is the fight against corruption and organized crime,” said President-elect Jair Bolsonaro.

According to the MP, the money collected by federal lotteries would be distributed as follows: National Security (9.26%), National Culture Fund (2.92%) and sports area (4.33%). Other sectors are also contemplated with the resources, and a part goes to the Income Tax. “Lotteries are sliced, a percentage goes to each place, and now there would be a percentage more precisely for the issue of public security in Brazil,” said Bolsonaro.

According to the new distribution proposed for the existing lotteries, and based on reference data from the 2016 collection, released by Caixa Econômica Federal (CEF), the Student Financing Fund (Fies) loses about R $ 900 million.

The Ministry of Public Security (FNSP and National Penitentiary Fund – Funpen) will keep about 9.4% of the gross revenue (25.8% of the net) of the existing lotteries. In the values ​​for 2016, this would give about R $ 1.2 billion (without update) from 2019 and without counting on Lotex, instant lottery not yet implemented.

Social Security continues with the highest isolated percentage among beneficiaries of lottery collection (16.8% of the gross). In 2016, the gross collection of all lotteries managed by Caixa was R $ 12.8 billion. Of this total, R $ 6.1 billion was distributed to the areas of sport, culture, social security, education, health and public security.

Lotex, according to the government’s intentions, should be operated by the private sector through a grant for about 15 years. However, in the auctions launched in 2017 there were no interested parties, even though the minimum bid has decreased.

The Plenary approved the highlight of PCdoB to Provisional Measure 846/18 and removed from the text a device that directed resources from unclaimed lottery prizes by fixed quota for the payment of the federal public debt. An agreement of the parties provides for the regulation, in another project, of the allocation of these resources to the Student Financing Fund (Fies), as is the case with other existing lotteries.

At the plenary session of the Chamber, deputy Bacelar (Pode-BA) recently defended the approval of Provisional Measure 846/18, which establishes new rules for the distribution of money collected from federal lotteries. One of the changes increases the volume of resources destined for the public security area, going from around R $ 400 million last year to more than R $ 1 billion in 2019.

Bacelar recalled that MP 846/18 replaces MP 841/18, whose analysis did not advance in the Chamber of Deputies for predicting the loss of resources for education, sport and culture – areas also benefited from the collection of lotteries.

The deputy took advantage of the debate on the provisional measure to express support for the legalization of gambling in the country. “If we legalize gambling in Brazil, we will have money for public security and for several areas. This will generate 500 thousand jobs in the country, oxygenate culture and leisure. The Brazilian continues to bet [on illegal games], but we are unable to raise money ”, he said.

 

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