Congressmen say that betting houses destroy families and compare the measure to the suspension of X in the country
The senators Omar Aziz (PSD-AM) and Cleitinho (Republicans-MG) want to take down betting sites in Brazil, known as bets. Cleitinho posted a video on his profile on Instagramon Tuesday (17.Sep.2024), in which Aziz talks about his request to the PGR (Attorney General’s Office) to ask the STF (Supreme Federal Court) to suspend the bets until the sector’s regulatory rules come into effect.
Aziz sent the request to the PGR on Monday (16.Sep). The ADPF (Action for Non-Compliance with a Fundamental Precept) was forwarded to the Attorney General of the Republic, Paulo Gonet. Here is the full of the document (PDF – 104 kB). According to the congressman, the bets they are “destroying families”, an opinion shared by Cleitinho.
In the video published by Cleitinho, Aziz said: “The The number of withdrawals from savings accounts has increased significantly. The number of loans has increased alarmingly. [As pessoas] are borrowing money to play”. And he added: “And who is playing? Children, young people”.
Cleitinho stated that he will file a lawsuit with the Supreme Court to take down betting houses that do not have legal representatives in Brazil. According to him, if the Supreme Court “took down X, the old Twitter, you can do that to them too”.
The senator said this is “an agenda that is not ideological” and that “has no side”. He stated that he will support Aziz’s action, “since the STF is in charge of everything”.
Watch the video posted by Cleitinho on Instagram:
In the action sent by Aziz to the PGR, the senator stated that these games, accessible to all ages, have social impacts on people and contribute to the evasion of foreign currency, since many of the companies are based abroad.
The congressman also said that despite a law having established guidelines for regulating the sector, the rules will only come into effect from 2025. The Ministry of Finance states that this is a “adjustment period”.
UNDERSTAND HOW THE REGULATION OF THE BETS
The Prizes and Betting Secretariat of the Ministry of Finance published in May of this year an ordinance to authorize sports betting houses can operate in Brazil.
The effects of the measures begin on January 1, 2025. The project that legalizes the operation of bets was sanctioned by the government Luiz Inacio Lula da Silva (PT) on December 30, 2023. The Prizes and Bets Secretariat was created on January 31 to regulate and monitor the sports betting market.
To operate in Brazil, the company will have to pay R$ 30 million to operate for 5 years. It may operate 3 brands commercial activities in Brazil on their electronic channels. The authorization may be reviewed whenever there is a merger, spin-off, incorporation, transformation, as well as transfer or modification of the bet.
Companies have until December 31, 2024 to comply with the requirements. Legal entities that operate in Brazil without the proper authorization from the Betting Secretariat of the Ministry of Finance will be subject to penalties. According to the ordinance, Companies that do not submit the required documents within this period will have their authorization application definitively archived.
The company must also prove the minimum net worth of R$ 30 million and a financial reserve in the minimum amount of R$ 5 million.
The deadline to submit the necessary documentation, after the request has been made, will be 30 days. The operating agent may or may not make a prior consultation with the Prizes and Betting Secretariat. The Ministry of Finance will have up to 150 days to analyze the information.
Documentation must be submitted in Portuguese to the Brazilian authorities. The government will require records of:
- legal qualification;
- tax and labor regularity;
- suitability;
- economic and financial qualification;
- technical qualification.
The ordinance establishes that the commercial exploitation of the fixed-odds betting lottery throughout the national territory will be exclusive to legal entities that have received prior authorization issued by the Prizes and Betting Secretariat.
Entities with headquarters and administration in national territory will be eligible for authorization to operate the betting lottery. subsidiary A foreign company may also be authorized to operate in the market, as long as it is registered in Brazil and complies with the rules established in the country.
It will not be permitted to grant authorization to a legal entity that has a branch, subsidiary, agency or representation in Brazil of a legal entity headquartered abroad.
The company must also present the CRF (Certificate of Regularity of the Severance Pay Fund) and the CNDT (Certificate of No Labor Debts).
Taxation of sports betting is one of the main bets of the Minister of Finance, Fernando Haddad, to increase revenue in 2024. According to this year’s Budget, the government expects to collect up to R$1.6 billion from betting.
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