In this game mode, bettors win when they correctly predict a real sporting event. When placing a bet, they know in advance the amount they will win if they are successful.
The game will be developed by private entities with authorization or concession from the Ministry of Finance, which will also be responsible for regulating and monitoring the activity. An inspection fee has been established and will be allocated to the Ministry of Finance unit responsible for conducting the activity.
The law stipulates that gambling operations can be carried out in both physical and virtual environments. Operators operating in physical environments will be subject to a specific tax of 6% of the proceeds collected, with the obligation to distribute at least 80% of the proceeds as prizes and income tax on the prizes, and a limit of 14% of the proceeds allocated to the operator. Operators operating in virtual environments will be subject to a specific tax of 3% of the proceeds collected, with the obligation to distribute at least 89% of the proceeds as prizes and income tax on the prizes, and a limit of 8% of the proceeds allocated to the operator.
The Ministry of Finance has two years to regulate the matter. Although the new law allows for the possibility of an extension of this period, the Ministry of Finance is already studying the model used by US agencies. It remains to be seen what priority President-elect Bolsonaro and his team will give to the matter.
