Brazil’s Secretariat of Prizes and Betting (SPA) has published two new “normative instructions” related to the administrative fees and advertising rules of the Brazil Bets regime.
The SPA has informed Bet licensees of the framework it has applied to the ‘monthly supervision fee,’ as mandated by Article 30 of Law No. 13,756/2018 – the federal legislation governing the Bets regime.
As authorised, the supervision fee applies to the direct payment of maintenance and regulatory fees used to fund the SPA.
The update follows a previous notice by the SPA in which it determined the calculation of Gross Gaming Revenues (GGR) that Bet licensees must apply when auditing and filing their accounts for tax purposes.
As previously documented, the SPA dictates that GGR should be calculated as: Total revenue from bets – (Prizes paid to winners + Income tax on prizes).
The SPA states that monthly payments of the supervision fee will apply to GGR revenues collected after deductions, including player prizes.
The supervision fee will be applied across eight revenue brackets for Bet licensees, beginning at the bottom tier of BRL 30m ($5,2m) with a fee of BRL 54,419.56 ($9,500). The top bracket of supervision will be charged at the revenue threshold of above BRL 660,960,000.00 (+ $115m), with a fee of BRL 1,944,000.00 ($338,000).
The supervision fee must be paid by the 10th of the month following the prize distribution, using the Union Collection Guide (GRU).
As detailed by SBCNoticias Brazil: “The process of transferring the collected amounts to the National Treasury’s Single Account will be carried out through the PagTesouro digital payment processing system, managed by the National Treasury Secretariat. The normative instruction establishes that payments can be made via, credit card, or a simple GRU bank slip.”
Ban on bank notes and currency symbols
On Thursday, February 6, the SPA published a further normative instruction, announcing that Bet licensees are forbidden from using national symbols in advertising campaigns or marketing materials promoted to customers.
The criteria for national symbols include currency signs and images of Brazilian banknotes and coins.
This instruction aligns with the rules of the Bets regime “to prevent misleading claims suggesting that prizes will be paid in cash, which is prohibited by law.”
The SPA stated that it aims to terminate promotional activities by Bet licensees that have used images of cash to promote prizes. Non-compliance may lead to fines, suspension of promotions, or revocation of authorisation for future campaigns.
Bet licensees were reminded that all commercial promotions involving prize giveaways require prior approval from the Ministry of Finance.
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