After government announces MP to tax sports betting, businessmen articulate the legalization of gambling in Brazil
Chamber President Arthur Lira and President Lula. Photo: José Cruz/Agência Brasil

The proposal by the government of Luiz Inácio Lula da Silva (PT) to create an PM to tax sports betting is accelerating the lobby for the release of other types of games in Congress.

According to the newspaper O Estado de São Paulo, there is pressure on parliamentarians since government speeches related to new taxation. Last Wednesday, the 12th, the sector’s lobby was even more open in a public hearing in the Chamber of Deputies.

On the occasion, representatives of the Ministry of Finance, operators, gamblers and businessmen were summoned to discuss the issue. Supporters of the games allege that the country fails to raise money with an activity that, even though it is irregular, already takes place in Brazil.

There is also a group of pro-gaming businessmen who have taken advantage of the situation to push for the legalization of electronic games, casinos and bingos.

While the government moves to raise revenue, the Chamber President, Arthur Lira (PP-AL), threatens to set up a Parliamentary Inquiry Commission (CPI) to discuss the issue.

PM to tax sports betting

The articulation of the provisional measure that provides for taxing sports betting affects a sector that already corresponds to the third largest source of sponsorship for Brazilian football clubs.

There is no official information on how much the segment generates in Brazil, however, according to betting agents, the sector moves from R$ 10 billion to R$ 100 billion in the year.

The Minister of Finance, Fernando Haddad, estimates that the MP will generate up to R$ 15 billion in revenue annually for the public coffers.

According to Portal Terra, the government’s intention is to charge BRL 30 million from each company that wants to operate sports betting in Brazil for a five-year license, in addition to charging 15% in taxes on the platforms’ profits.

The gambler will have to pay 30% of taxes on the prizes he wins, even though he may lose that amount in a subsequent bet.