Item 11: Ordinance SPA/MF NO. 1,212

Establishes procedures for the transfer of the allocations from the fixed-odds betting lottery revenue.

Ordinance SPA/MF No. 1,212, dated 07/30/2024, addresses the procedures for transferring the allocations from the fixed-odds betting lottery revenue, as outlined in §1-A of Article 30 of Law No. 13,756, dated December 12, 2018.

The initiative will encompass the revenue from all modalities of fixed-odds betting, including those conducted physically or virtually, as well as those involving real sports-themed events and virtual online gaming events.

It should be noted that, after deducting the payment of prizes and the income tax on the prizes, 88% of the collected revenue will be allocated to cover the operating and maintenance expenses of the betting operator. The remaining 12% will be reserved for social functions, as established by Law No. 13,756/2018.

Other highlights of the Ordinance include:

• The transfers will be made via payment through the Federal Revenue Collection Document (DARF) to the Single Treasury Account.
• The Betting Operator must make the transfers in accordance with the provisions of the Ordinance, under penalty of civil, administrative, and criminal liability.
• The transfers must observe the general principles of public administration and will be subject to accountability through monthly reports and oversight by the Secretariat of Prizes and Bets.
• In case the Bettor loses the right to receive the prize or request a refund, the amounts will be collected to the Single Treasury Account.
• The method of distributing the 7.30% transfer to entities of the National Sports System and to Brazilian athletes or those affiliated with sports organizations based in the country will be specifically regulated. This contribution stems from the use of their names, sports nicknames, images, brands, emblems, anthems, symbols, and similar items for the promotion and execution of the fixed-odds betting lottery, as per Article 30, §1-A, III, a) of Law No. 13,756/2018.
• The Secretariat of Prizes and Bets will issue specific guidance on the allocation of certain transfers in the sports area, for example, the 2.20% to the Brazilian Olympic Committee and 0.70% to the Brazilian Club Committee.
• For a period of 5 years, the Betting Operator must keep supporting documents of the transfers available to the Secretariat of Prizes and Bets.

The Corporate Law and M&A, Banking & Fintechs, Compliance, Public Law & Regulatory, and Consumer & Product Liability teams at Souto Correa are available to provide more information and clarifications on the matter.