BRAZIL: The Ministry of Finance establishes how betting operators must collect the amounts for social purposes

On Wednesday (31/07), the Ministry of Finance's Department of Prizes and Betting published SPA/MF Ordinance No. 1.212/2024, which establishes how betting operators must collect the social allocations for this type of lottery. Like all lotteries in Brazil, part of the proceeds must fulfil a social function. In the fixed-odds lottery, the legislation establishes the areas of health, education, sport, social security, industrial development, tourism and public safety as beneficiaries.

The Ordinance contains specific rules to guide companies on how to collect the amounts provided for in §1-A of article 30 of Law 13.756/2018, which was amended by Law 14.790/2024. The first step was to specify the collection codes for the amounts to be passed on to the National Treasury, using a Federal Revenue Collection Document (DARF).

According to the new rule in the regulatory framework for fixed-odds lottery betting, the betting operator who does not pass on the expected revenue to the social destination will be subject to civil, administrative and criminal liability. They must keep proof of transfers to the Treasury and to the legal beneficiaries at the SPA's disposal for a period of five years.

In the case of forfeited prizes, in which the player loses the right to receive the prize or request a refund, the amounts will be paid into the Treasury's Single Account. Operators will have to submit monthly accountability reports, which will be monitored by the SPA. The rules established by the ordinance will apply from 1 January 2025.