Acre may receive part of the resources from the taxation of online sports betting
Acre may receive part of the resources from the taxation of online sports betting

The Federal Government recently announced the taxation of sports betting. The regulation of the Brazilian betting market will take place through a provisional measure (MP) prepared by the Ministry of Finance.

In addition to the bookmakers, bettors must be taxed at 30% on top of the amounts of prizes won. However, the government may benefit gamblers with exemption for winnings that do not exceed the value of the first Income Tax-free range, updated to R$ 2,640.

Last Tuesday, the 2nd, the governor of Pará, Helder Barbalho (MDB), who currently presides over the Interstate Consortium for the Sustainable Development of the Legal Amazon, sent a request to President Lula to include the Amazonian states in the Provisional Measure on taxation of sports betting.

In the document, Barbalho asks that the states of the Amazon receive a fraction of the amounts arising from taxation, to strengthen environmental preservation policies. With the MP, the federal government intends to increase the tax collection of bets by up to R$ 150 billion.

In addition to Acre, Amapá, Amazonas, Mato Grosso, Maranhão, Pará, Rondônia, Roraima and Tocantins may receive part of this amount.

It is worth mentioning that the practice has been legalized in the national territory since 2018 in the government of Michel Temer, but there is still no specific legislation for the betting sector in Brazil. The expectation of the Ministry of Finance is to collect from R$ 12 billion to R$ 15 billion per year with the provisional measure.

Excerpt from the letter sent to the president on the taxation of sports betting

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