Published: November 8, 2023

Brazil: CEsp approves sports betting PL: Grant of 5 years, 3 brands per operator and outside online games

CEsp approves sports betting PL: Grant of 5 years, 3 brands per operator and outside online games

The Senate Sports Committee approved this Wednesday (8) the report by Romário (PL-RJ), which regulates sports betting in Brazil. The grant period goes from 3 to 5 years for R$30 million and now each operator can have up to 3 commercial brands. The negative data for companies is the exit of games such as online casinos and other virtual ones that will not be allowed and prohibits advertising in any media and social media between 6 am and 10:59 pm. Furthermore, Loterias CAIXA and its licensees will be able to explore the activity without payment of a grant.

The report by Senator Romário (PL-RJ), president of the Sports Commission, was approved this Wednesday morning (8) with acceptance of Amendments 14-U, 47-U, 48-U, 61, 73 and 96, for the partial acceptance of Amendments 6-U, 16-U, 17-U, 22-U, 39-U, 40-U, 45-U, 49-U and 74. In the document, the other amendments presented were rejected, and by offering two new ones, the first defining that the grant will have a maximum value of R$30 million for five years, but increasing the number of brands to be explored by operators applying for a license to three.

“ Given the sole paragraph of art. 12 of Bill No. 3,626, of 2023, the following wording:

Art. 12.................................................. .................................

Single paragraph. The amount stipulated as a fixed grant will be limited to a maximum of R$ 30,000,000.00 (thirty million reais), considered the limit of up to 03 (three) trademarks to be exploited by the legal entity on its electronic channels by act of authorization .”

Amendment nº 32-U was approved as a highlight, which " amends article 29 with the scope of including § 2 and items I to X, referring to the activities of Caixa Econômica Federal, Caixa Loterias S/A and Permissionários Lotteries in the fixed-odd betting market. This action would occur without the burden of the grant ."

Amendment 38-U was also approved as a highlight and inserts two new sections to art. 17 to " prohibit advertising or commercial advertising in sports arenas and in any mass media such as newspapers, magazines, television, radio and social media, between 6 am and 10:59 pm.

Furthermore, prohibit actions that sponsor teams, individual athletes, former athletes, referees, members of professional and amateur technical committees of all sports, as well as championships organized by Olympic sports confederations, recognized and linked to the Brazilian Olympic Committee (COB) , as well as the federations affiliated to them of all sports ".

Among the changes accepted by Romário, highlight is the limitation of bets only on real sports-themed events, thus prohibiting online games.

The percentage changes allocating part of the resources to the tourism and health sectors were maintained in the new report.

As a matter of urgency, PL 3626/23 defines the basic rules for the operation of sports betting and online games. With the relocation proposed by Romário, the 18% on the GGR, to be taxed on the betting houses, was distributed as follows:

2% for Social Security;

1.82% for the Ministry of Education;

6.68% for the sports area, with 4% for the Ministry of Sports and 2.23% for sports confederations, with the exception of the CBF (Brazilian Football Confederation), 0.5% for the state and national sports secretariats. DF, and 0.05% for the Brazilian Master Sports Committee;

4.3% for the tourism area, with 3.5% for the Ministry of Tourism and 0.8% for Embratur;

0.5% to the Ministry of Health, for measures to prevent, control and mitigate social harm arising from gaming in healthcare areas;

0.15% divided between civil society entities, with 0.05% for Fenapaes (National Federation of Associations of Parents and Friends of the Exceptional), 0.05% for Fenapestalozzi (National Federation of Pestalozzi Associations), and 0. 05% to the Brazilian Red Cross;

2.55% for the public security area, with 2.05% for the FNSP (National Public Security Fund) and 0.5% for the Federal Police Equipment and Operationalization Fund.

PL 3626/23 is being analyzed by the Sports and Economic Affairs committees at the same time. At CAE, the report by Senator Angelo Coronel (PSD-BA) should be presented on November 21st and the following week, Senator Jorge Kajuru (PSD-GO) will present the final report, combining the two documents, for presentation of the three reports in Plenary.

Given the delay in analyzing the matter, from November 11th the agenda will be locked until the PL is voted on. Despite the general interest of parliamentarians in approving the project, there is a national holiday (15/11 - Proclamation of the Republic) and two other local holidays (20/11 - Black Consciousness holiday in states such as São Paulo, Rio and Bahia, and 30 /11 - Evangelical Day in the Federal District), which could further delay the voting schedule.

If the project is, in fact, amended in the Senate, it will need to return for analysis in the Chamber, where it began to be processed.

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