According to Haddad, taxation of sports betting could yield BRL 2 billion in 2024
Photo: José Cruz / Agência Brasil

The Minister of Finance, Fernando Haddad, said last Thursday, the 20th, that the proposal will be forwarded to Congress with a view to regulating and taxing sports betting.

According to Haddad, this new source of revenue could yield around 2 billion reais next year. Previous projections by the ministry indicated values ​​of up to 12 billion per year with the measure.

The situation could impact the goal of the new fiscal framework to zero the deficit in 2024.

At a press conference in Rio de Janeiro, the Minister of Finance again criticized the level of interest rates in Brazil, claiming that the government pays 10% per year in real interest and that “the country can’t take it anymore”.

The moment of resources related to the gambling sector in the national territory reached the mark of 8 billion dollars this year (about 40 billion reais at the current exchange rate), according to the Central Bank (BC).

This value refers to payment flows and foreign exchange operations. In addition, the government should edit a provisional measure to regulate sports betting later this month.

Sports betting tax

According to the proposed rules for taxation of sports betting, a bookmaker can only operate in the country if authorized by the Federal Government.

Therefore, it will have to pay for a grant in the amount of R$ 30 million, have its headquarters in the national territory and minimum capital of R$ 100 thousand.

Minister Fernando Haddad, President Lula and Vice President Geraldo Alckimin. Photo: Ricardo Stuckert (PR)

The taxation of companies will happen as follows: 16% on the so-called GGR (gross gaming revenue). That is: on the income obtained from the games, minus the prizes paid to players.

In addition, bettors will pay a 30% Income Tax rate on the prize, but with exemption for amounts up to R$ 2,112.

The collection generated by the 16% required from operators will be distributed as follows:

  • 2.55% will be allocated to the National Public Security Fund;
  • 0.82% to elementary school;
  • 1.63% to clubs, in return for name assignment;
  • 10% to social security;
  • 1% to the Ministry of Sports.

The tendency is for the Federal Government to also send a bill to Congress to install a secretariat for games and lotteries with the aim of overseeing the sector.

The intention is for the government to establish a system to monitor, inspect and combat suspected cases of match-fixing at sporting events.