Temer approves law that redefines lottery revenue sharing and creates sports betting.
The President of the Republic, Michel Temer, sanctioned Provisional Measure 846, which allocates lottery resources to public security. In 2019, these amounts should reach R$ 1,8 billion and, in 2020, R$ 4,3 billion. The signing took place this Wednesday (12), during an event at the Planalto Palace.
For the president, security is a government priority. "The issue of public security is fundamental, it is a priority for Brazilians and a priority for our government," Temer stated. "Without encroaching on constitutional competencies, we were able to coordinate and integrate the entire public security sector in our country. First, by creating the Ministry of Public Security, and second, by creating the Unified Public Security System," he explained.
He further stated that in recent months, after the creation of the system, many integrated operations have been carried out and have obtained "extraordinary results." In practice, the resources and the system create a new security structure in the country. In addition to increasing investments in the area, this new model integrates police and intelligence forces.
Public security
The Ministry of Public Security will receive approximately 9,4% of the gross revenue from existing lotteries. According to Minister Raul Jungmann, the sector will receive around R$ 4,2 billion in revenue from this law by 2022. For next year alone, this will amount to approximately R$ 2 billion.
Of the funds allocated to public security, half will go to the states. The other half will be divided into 20% for quality of life programs for police officers, security agents, and prison officers, and 30% for management by the federal government. According to Jungmann, the federal government may enter into agreements with states and municipalities or make direct purchases.
Previously, Temer had issued Provisional Measure 841, which created the National Public Security Fund using resources from federal lotteries and diverted funds from the Ministries of Culture and Sports. Provisional Measure 846, signed by President Michel Temer at the end of July, redirected resources from federal lotteries to the Ministries of Sports and Culture, in addition to allocating part of these funds to the area of public security.
At the law signing ceremony, Jungmann praised the Temer government's measures to federalize public security. According to him, what was done before was a "headless federalism." "If in health the process of building the SUS (Unified Health System) was led by the Union; if this happened in social assistance, culture and sports and never in public security, the federal government had a responsibility [to do it]. Today we have a National Public Security Policy. It's law, institutional, and it will give direction to public security in Brazil."
Among the main measures is the increase from 2,87% to 2,92% in 2018, and from 0,5% to 2,91% from 2019 onwards, of the percentage of lottery revenue allocated to the National Culture Fund.
It also increases the participation of the Ministry of Sport (from 3% to 3,5% in 2018, and from 0,66% to 3,53% from 2019 onwards) in lottery fundraising.
Creates a new type of sports betting.
In addition to redistributing lottery percentages to culture, sports, and public safety, and modifying the prize structure of Caixa Lotteries, PLV 29/18 (MP 846/18) also created the new lottery modality of fixed-odds betting, or sports betting.
The Lottery Provisional Measure (MP) grants the government time to regulate the new lottery modality of fixed-odds betting or sports betting. Paragraph 3 of Article 29 of MP 846/18, now transformed into Conversion Bill – PLV No. 29/2018, defines that "the Ministry of Finance will regulate within a period of up to two years, extendable for up to an equal period, from the date of publication of this Law".
This type of betting involves a system related to real sporting events, where the amount the bettor can win if their prediction is correct is defined at the time the bet is placed.
The payout for sports betting will be 80% for physical locations and 89% for online locations. The operator/POS will receive 14% in physical locations and 8% in online locations to cover operating and maintenance expenses.
|
Organization |
Physical | On-line |
|
Total prize |
80% - IR |
89% - IR |
|
FNSP |
2,50 % |
1,00 % |
|
social Security |
0,50 % |
0,25 % |
|
Operator and POS |
14,00 % |
8,00 % |
|
Sports entities – football – brands |
2,00 % |
1,00 % |
|
School units that achieve targets in national assessments. |
1,00 % |
0,75 % |
| Total | 100 % |
100 % |
CHAPTER V
FIXED ODD BETTING
Article 29. A lottery modality is hereby created, in the form of an exclusive public service of the Union, called fixed-odds betting, whose commercial operation will take place throughout the national territory.
§ 1 The lottery modality referred to in the heading of this article consists of a betting system relating to real sporting events, in which it is defined, at the time the bet is placed, how much the bettor can win if the prediction is correct.
§ 2 The fixed-odds betting lottery will be authorized or granted by the Ministry of Finance and will be operated exclusively in a competitive environment, with the possibility of being marketed through any commercial distribution channels, both physical and virtual.
§ 3 The Ministry of Finance shall regulate, within a period of up to 2 (two) years, extendable for up to an equal period, from the date of publication of this Law, the provisions of this article.
Article 30. The proceeds from the fixed-odds betting lottery will be allocated as follows:
I – in physical form:
a) 80% (eighty percent), at a minimum, for the payment of prizes and the collection of income tax levied on the prize money;
b) 0,5% (five tenths of one percent) for social security;
c) 1% (one percent) for the implementing entities and own implementing units of public school units of early childhood education, elementary education and secondary education that have achieved the goals established for the results of the national basic education assessments, according to an act of the Ministry of Education;
d) 2,5% (two and five tenths percent) for the FNSP;
e) 2% (two percent) for sports entities in the football modality that cede the rights to use their names, trademarks, emblems, anthems, symbols and similar items for the promotion and execution of the fixed-odds betting lottery;
f) 14% (fourteen percent), at most, to cover the operating and maintenance expenses of the fixed-odds betting lottery operator; and
II – in a virtual environment:
a) 89% (eighty-nine percent), at a minimum, for the payment of prizes and the collection of income tax levied on the prize money;
b) 0,25% (twenty-five hundredths of one percent) for social security;
c) 0,75% (seventy-five hundredths of one percent) for the implementing entities and own implementing units of public school units of early childhood education, elementary education and secondary education that have achieved the goals established for the results of the national basic education assessments, according to an act of the Ministry of Education;
d) 1% (one percent) for the FNSP;
(e) 1% (one percent) for sports entities in the football modality that cede the rights to use their names, trademarks, emblems, anthems, symbols and similar items for the promotion and execution of the fixed-odds betting lottery;
f) 8% (eight percent), at most, to cover the operating and maintenance expenses of the fixed-odds betting lottery operator.
§ 1 The percentages allocated to bonuses and to operating and maintenance expenses provided for in subparagraphs a and f of items I and II of the heading of this article may vary, provided that the annual average meets the minimum and maximum percentages established in said subparagraphs.
§ 2 The operating agents shall transfer the lottery proceeds directly to the legal beneficiaries referred to in subparagraphs cee of items I and II of the heading of this article.
§ 3 The resources referred to in subparagraph c of items I and II of the heading of this article must be applied to operating expenses and investments that contribute to guaranteeing the functioning and improvement of the physical and pedagogical infrastructure of educational establishments.
§ 4 For the purposes of this Law, the following definitions apply:
I – Implementing entities: the district, state, and municipal secretariats responsible for formalizing the procedures necessary for receiving and executing resources allocated to schools within their education networks that do not have their own implementing units;
II – Own implementing units: private non-profit entities, representative of public schools and composed of members of the school community, commonly called school funds, school councils, school boards, parent-teacher associations, among other names, responsible for formalizing the procedures necessary to receive transfers, as well as for the execution of these resources.
Article 31. Income tax will be levied on winnings obtained from prizes resulting from bets in fixed-odds lotteries, as provided for in Article 14 of Law No. 4.506, of November 30, 1964, observing for each winning the provisions of Article 56 of Law No. 11.941, of May 27, 2009.
Article 32. A Supervision Fee is hereby established for the commercial operation of fixed-odds betting lotteries, the taxable event of which is the regular exercise of the police power referred to in § 2 of Article 29 of this Law, and which applies to the total amount allocated to prizes distributed monthly.
§ 1 The Inspection Fee covers all acts of regular police power inherent to the activity and will be applied according to the prize ranges offered monthly, as set forth in the Annex to this Law.
§ 2 The Inspection Fee shall be collected by the 10th (tenth) day of the month following the distribution of the prize.
§ 3 The Inspection Fee not paid within the period stipulated by law will be subject to late payment penalties and interest, pursuant to Article 61 of Law No. 9.430, of December 27, 1996.
§ 4. Debts relating to the Inspection Fee will be registered as outstanding debt to the Federal Government.
§ 5 The amount resulting from the collection of the Inspection Fee will be transferred to the unit of the Ministry of Finance responsible for overseeing the commercial operation of fixed-odds betting lotteries.
§ 6 The rate referred to in the heading of this article shall be updated monetarily, provided that the value of the update does not exceed the variation of the official inflation index calculated in the period since the establishment of the rate, for the first update, and from the last correction, for subsequent updates, at intervals of not less than 1 (one) year, as regulated.
§ 7. The legal entities that, under the terms of article 29 of this Law, operate fixed-odds betting lotteries are subject to the Inspection Fee.
Article 33. The communication, advertising, and marketing activities of the fixed-odds betting lottery must be guided by best practices in corporate social responsibility directed at lottery operations, as per regulations.
Art. 34. Bettors forfeit the right to receive their prizes or to request refunds if payment is not claimed within 90 (ninety) days, counted from the date of the first publication of the result of the last real event that was the subject of the bet.
Article 35. In accordance with Law No. 9.613, of March 3, 1998, the legal entity holding the authorization shall submit to the Council for the Control of Financial Activities (Coaf), in accordance with the rules issued by the Executive Branch, information on bettors relating to the prevention of money laundering and the financing of terrorism.
***
Commercial Promotion moves from Caixa to SEFEL
The Lottery Provisional Measure also removes from Caixa Econômica Federal the authorization and oversight of promotional campaigns aimed at boosting the sale of goods or the contracting of services.
Following the approval of Provisional Measure 846/18, all operations will be centralized in the Ministry of Finance, through the Secretariat for Fiscal Monitoring, Energy and Lotteries – SEFEL.
CHAPTER IV
FROM COMMERCIAL PROMOTION
Article 26. Except for the powers of the National Monetary Council, the Ministry of Finance is responsible for the duties inherent to public power.
established in Law No. 5.768, of December 20, 1971.
§ 1 In accordance with the provisions of the heading of this article, the Ministry of Finance shall be responsible for analyzing requests for authorization, issuing authorizations, and overseeing the operations covered by Law No. 5.768, of December 20, 1971.
§ 2 The authorizations will be granted on a temporary basis and for each promotional event, which may not exceed a period of 12 (twelve) months.
§ 3 From the date of publication of this Law, requests for authorization that are being processed at Caixa Econômica Federal must be forwarded to the Ministry of Finance, for the purposes of the provisions of this article.
Article 27. The inspection fee referred to in Article 50 of Provisional Measure No. 2.158-35, of August 24, 2001, shall be adjusted for inflation, provided that the amount of the adjustment does not exceed the variation of the official inflation index calculated in the period since the last adjustment, at intervals of not less than 1 (one) year, as provided for in the regulations.
Article 28. Infractions of Law No. 5.768, of December 20, 1971, and its respective regulations, not covered by the provisions of Articles 12, 13, and 14 of said Law, subject the offender, individually or cumulatively, to the following sanctions:
I — revocation of authorization;
II — prohibition from carrying out operations governed by Law No. 5.768, of December 20, 1971, for a period established by the Ministry of Finance, which may not exceed 2 (two) years; and
III — a fine of up to 100% (one hundred percent) of the sum of the values of the goods promised as prizes, to be established by the Ministry of Finance.
Check the Official Gazette of the Union for ' Law No. 13.756, of December 12, 2018 '.
