José Francisco Manssur, adviser to the Executive Secretary of the Ministry of Finance, highlighted in a public hearing in the Chamber of Deputies, the challenges in relation to the taxation of bookmakers.
In the national territory, the betting sector is growing significantly and can move up to R$ 150 billion per year. However, the market demands attention due to a still uncertain regulation in Brazil, in addition to doubts about how companies and gamblers will be taxed.
The Ministry of Finance is drawing up a provisional measure to raise revenue and eliminate the public deficit next year. The estimate of Minister Fernando Haddad is to collect between R$12 and R$15 billion with the taxation of bookmakers. The previous amount revolved around 6 billion reais.
“In England, for example, the tax is 15%, applied only on the GGR (Gaming Gross Revenue), the difference between the total value of bets and the value of prizes paid”, said Rafael Vieites, partner of Vieites, Mizrahi, Rei Advogados, in an interview with Jornal Tribuna.
“It is quite opportune, at this moment, for the Senate to proceed with PL 442/1991, which provides for the legalization of games in a more comprehensive way. It is a large source of revenue and the greater number of modalities will allow for more adequate taxation. In addition, the gaming industry has enormous potential for generating direct and indirect jobs”.
Details of the MP for regulation and taxation of bookmakers
Manssur also revealed some details of the provisional measure:
- Bookmaker will need to have a headquarters in Brazil;
- Afford a grant of BRL 30 million to the Federal Government;
- A 15% tax will be charged on top of the amount that the company collects, excluding the amount paid to customers in prizes from the calculation basis;
- 2.55% of the net income will go to the National Public Security Fund, 0.82% to public education and 1.63% to sports entities.
According to Jornal Tribuna, the Brazilian market moves approximately R$ 160 million per day. A recent study points out that, in 2022 alone, the country stopped receiving more than 6 billion reais due to the absence of taxation on bookmakers.
It is worth noting that the first measure that legalized betting on sporting events in Brazil dates back to 2018 (Law 13,756/2018) and was signed by then President Michel Temer. However, the regulation of the activity dragged on for the last few years and did not happen, which prevents taxation.
The expectation is that the MP for the regulation of betting will be announced by the Ministry of Finance in the coming days.
