Bolsonaro sanctions law that creates health and tourism lotteries

President Jair Bolsonaro (PL) sanctioned the law that authorizes the creation of Health and Tourism lotteries. According to the General Secretariat of the Presidency of the Republic, the measure – which is published in the Official Gazette of the Union this Thursday (22) – seeks to increase funds for the health and tourism sectors through the financing of initiatives to reduce the impact of the pandemic on these sectors.

With the measure, the private sector is authorized to operate lotteries (which was the only function of Caixa Econômica Federal), in addition to fixed-odds sports betting and numerical predictions. The Federal Senate’s legislative report determines that all the amount collected will first be used to pay the prizes, the income tax on the award and the social security portion.

Only after these discounts will the amount collected be allocated to the National Health Fund (FNS) — in the case of the Health Lottery — and to Embratur, in the case of the Tourism Lottery. As a result, only part of the budget will be allocated to Health and Tourism.

In all modalities, 95% of the proceeds will go to the private initiative that operates the games. In the prediction betting modality, 5% of the proceeds will go to FNS or Embratur. In the sports betting and fixed-odds modality, the participation of FNS and Embratur will drop to 3.37%, and the clubs that cede the rights will receive 1.63%.

The prizes not claimed by the punters who win within the deadline in the Health and Tourism lotteries will also be destined to FNS and Embratur.

Vice of unconstitutionality

A provision that determined that the Ministry of Economy would be responsible for disciplining the operation of the two types of lottery was vetoed after consultation with the competent Ministries.

According to the General Secretariat of the Presidency, the measure is unconstitutional, as it stipulates a deadline for the Economy to discipline the rules for granting the exploitation of these lotteries. This is because it would violate the Constitution, which determines that such attribution belongs only to the President of the Republic.

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