Brazilian President Jair Bolsonaro, Law No. 14.455, which creates health and tourism lotteries, was approved on September 21. According to the text, part of the profit collected from the games will be allocated to National Health Foundation (FNS), in the case of a health lottery; and for Brazilian Tourist Board (Embratur)in the case of the Tourist Lottery.
As reported BNL date, the project appeared at the beginning of the pandemic and in May 2021, after analysis by federal deputies, the text provided that the collected funds would be directed to the prevention and fight against the coronavirus, as long as the state of emergency in the field of health care continues. He also predicted that the tourism lottery would mitigate the economic impact of the tourism sector during the pandemic.
The bill underwent changes after approval in the Senate, which was well received The Chamber of Deputies approved it on August 30. Changes include the permanent nature of the Tourist Lottery; in addition to providing resources to the National Health Fund and Embratur, after payment of premiums and payment of taxes and social security.
Meanwhile, the sanctioned text allows the implementation of the terms of sports betting, betting with fixed odds and betting on numbers with the following percentages:
– In lottery mode with numerical predictions: 95% for the operator and 5% for the National Health Fund (NHF), in the case of a health lottery; and for the Brazilian Tourism Board (Embratur), in the case of a tourism lottery.
– In the mode of betting on sports and lotteries with fixed odds: 95% for the operator; 3.37% for FNS, in the case of the health lottery and Embratur; in the case of a tourist lottery; 1.63% for clubs that grant the rights to use their names, trademarks, emblems, anthems, symbols and similar elements for their distribution.
In addition, the sanctioned norm provides for the following amounts of winnings related to lottery products not claimed by bettors included in the statute of limitations will be returned, respectively, to Federal Tax Service and Embraturin view of the financial and budgetary programming of the federal government.
Bolsonaro vetoed the clause
The proposal also included a concession to a private initiative on the activities of the health and tourism lotteries, but Jair Bolsonaro vetoed – as BNL Data predicted at the time – Article 3 of the proposalwhich sets a 30-day deadline for the Ministry of Economy to create rules for providing the “Health” lottery by the Ministry of Health and the “Tourist Lottery” by the Ministry of Tourism.
The General Secretariat of the President explained this in statements to the press the president of Brazil vetoed the proposal because he considered it unconstitutional. “This measure was found to be unconstitutional because setting a deadline for the Ministry of Economy to sanction regulations for the provision of these lotteries would violate the provisions of Article 2 and Part 1 of Article 84 of the Constitution,” they explained.
According to the above media, “with the presidential veto, any hint of a concession on the use of modalities by the relevant ministries was excluded from the text, and in this case, since these are trade union lotteries, the regulatory decree will be able to establish that the Economic Monitoring Secretariat of the Special Secretariat for Productivity and Competitiveness of the Economy Secretariat will regulate and delegate the work of lotteries to the Federal Savings Bank.
They also stated that “Deputy Minister of Betting and Commercial Promotion of the Ministry of Economy and Lotteries Kaisha will be able to create quality products with new percentages approved for Health and Tourism lotteries in the modality of sports betting and numerical predictions.
In addition, Caixa will be able to operate in fixed-odds betting mode even before the European Union issues rules on sports betting. In other words, “the percentage of new products may also mean the removal of some modalities that represent less than 5% of the Caixa Loteria product range, with the exception of the Federal Lottery,” the officials clarified.
Click here to view Law No. 14.455 approved by the Brazilian government.