This Tuesday, July 25, 2023, Provisional Measure No. 1,182 was published, which deals with the regulation of sports betting, and the Brazilian Institute of Responsible Gaming (IBJR) has already shared its position regarding the MP.
The PM takes effect immediately and establishes an 18% rate on the Gross Gaming Revenue (GGR), which represents the revenue generated by all gaming activities.
Notably, this taxation represents a 260% increase over the previous law, which provided for a 5% rate.
With the incidence of additional taxes, such as PIS, COFINS and ISS, the total tax burden for companies should reach around 30%, according to the IBJR.
This high taxation places Brazil among the countries with one of the highest tax burdens in the world in the betting sector.
IBJR CEO Andre Gelfi expresses concern about this tax burden as it will affect the entire economic chain related to sports betting.
He believes that this measure may be viewed with skepticism by Brazilian society, as legal companies will be able to pass on the costs to gamblers, which, in turn, may boost the growth of the parallel market, both physical and online, in search of alternatives. more attractive.
PM establishes positive norms for the integrity of gamblers and sport
However, the text of the MP brings positive aspects in relation to the protection of players and the sport.
One of these measures is the prohibition of the direct or indirect participation of people under 18 or those registered in the national credit protection registers (SPC and Serasa) in betting, aiming to safeguard the most vulnerable people from possible financial losses.
In addition, the IBJR values the MP’s efforts in establishing guidelines for advertising in the sector, attributing to the National Advertising Self-Regulation Council (Conar) the task of overseeing and regulating communication and marketing actions.
Awareness will also be promoted so that sports betting can be seen as an entertainment opportunity for Brazilians.
The IBJR has already made it clear that it is keen to participate in discussions and debates at the legislative level, seeking to build regulations that protect consumers and sport, ensure public collection and create a sustainable business environment for companies involved in the sports sector. sports betting.
About the Brazilian Institute of Responsible Gaming – IBJR
The Brazilian Institute of Responsible Gaming (IBJR) was born from the union of the Bet365, Flutter, Entain, Betsson Group, Betway Group, Yolo Group, Netbet Group, KTO Group, Rei do Pitaco, Novibet, LeoVegas, OKTO Group and Pay4Fun.
The Institute’s objective is to promote the debate on the regulation of this segment in Brazil.
The IBJR seeks to contribute with information to defend the creation of clear rules and guidelines so that sports betting companies can operate legally, protecting the interests of players and civil society.
