Taxation of sports betting Helder Barbalho asks that Amazonian states be covered
Photo: Valter Campanato / Agência Brasil

The president of the Interstate Consortium for Sustainable Development of the Legal Amazon and governor of Pará, Helder Barbalho (MDB), sent this Tuesday, 2, to President Luiz Inácio Lula da Silva (PT), a letter asking for the inclusion of a benefit to the states Amazonians in the Provisional Measure for the taxation of sports betting.

The Federal Government decided to regulate and tax the sector to increase tax collection by up to R$ 150 billion. The practice has been legalized in Brazil since 2018, however, it has not yet been regulated. The expectation of the Ministry of Finance is to collect from R$ 12 billion to R$ 15 billion per year.

If Barbalho’s request is accepted, the governments of Acre, Amapá, Amazonas, Mato Grosso, Maranhão, Pará, Rondônia, Roraima and Tocantins will be able to receive part of this amount. The document sent to the Planalto Palace points out that the Consortium’s intention is to use the funds with policies for the preservation of the Amazon.

“It appears that the Provisional Measure that provides for this regulation is being prepared by the Ministry of Finance. However, taxation on revenue provides benefits to the National Public Security Fund, public education and sports entities”, says the documentation.

“Bearing in mind that the Conservation of the Amazon acquires very expressive proportions, where the recognition of the need for exceptional treatment in relation to the states that constitute it is brilliant, also considering the importance and need to encourage economic activities that combine the development of the region Amazonia to the preservation of the Forest, we strive for the benefits of the collection in question to be extended in favor of the protection of the Brazilian Amazon”.

Sports betting tax

The Federal Government recently announced that the taxation of sports betting will involve bookmakers and gamblers operating in the national market. Therefore, the taxation of the sector will be part of the Provisional Measure that should be published in the coming days.

With the MP, bettors must be taxed at 30% on top of the prizes obtained in a sporting event. The government must include exemption for earnings that are within the value of the first Income Tax-free range, updated to R$ 2,640.

Bookmakers, on the other hand, will pay BRL 30 million to get the five-year license, in addition to a 15% tax on profit. The regulation will force companies to have headquarters in Brazil, in addition to Brazilian employees and share capital of at least R$ 100,000.