The Brazilian Association of Sports Betting (Abaesp) is preparing a proposal for taxation of the sector to be presented to the Ministry of Finance in the coming days. In the government, a preliminary version of the text of a Provisional Measure (MP) is already circulating among technicians who analyze, for example, the constitutionality of taxation.
In March, Abaesp sent general guidelines to the department’s technicians on the payment of taxes by bookmakers, an issue defended by Minister Fernando Haddad as a way of increasing revenue collection in the country.
Among the points to be discussed are the payment of a R$ 30 million license to companies and the taxation of bettors’ profits – this point is not well received by the Association and is still under analysis by the government.
CNN found that the Brazilian Football Confederation (CBF) sent a letter to the Ministry of Finance suggesting that the government raise the percentage to be received by the entity with the collection from the taxation of betting sites. In recent days, the main football clubs in Rio de Janeiro and São Paulo released a note demanding greater participation in the discussion of the subject.
President of Abaesp lists points of attention before regulation
Rodrigo Alves, president of Abaesp, told CNN that “it is not discussed” that the State needs to benefit from taxes, jobs and other advantages that the betting sector offers the country.
The estimate for revenue is BRL 12 billion for the segment this year, 71% more than in 2020 (BRL 7 billion), when there was a “boom” in games. According to Alves, the payment of a license from bookmakers to bettors is one of the most relevant issues.
“The Brazilian gambler, who is already used to betting in foreign houses, will only stop doing so if the “national operators” are attractive. Because if the cost of applying for the license, the tax cost, and the other charges are too high for licensed operators, they will not be able to have a product as attractive as that of houses outside the country”, he said.
About the association
Abaesp is a non-profit body that aims to defend the rights and interests of its members as well as companies, operators, and other entities that seek to see the Brazilian sports betting market regulated.
The entity arose from the community’s need to have an active and institutionalized voice in order to also be able to intervene and give an opinion on matters that will directly affect the class, such as regulation.
The founding members of the association are mostly public figures in the Brazilian sports betting scene and have more than a decade of experience in sports betting, and with that, they carry extensive knowledge regarding the gaming industry, nationally and internationally, in addition to having wide range and penetration among bettors.
