The Provisional Measure, published on July 25th, which regulates sports betting in the country, moved the global industry. The Brazilian Institute of Responsible Gaming (IBJR) has publicly expressed its opposition to the tax burden proposed by the Federal Government.
According to the official note, the Brazilian market has “the potential to be the largest regulated market on the planet“. However, the “18% tax on GGR (gross profit), which came in higher than expected”.
In addition, the IBJR communiqué pointed out that this is an attempt to “employ the narrative that the 18% represents the total Brazilian tax burden and that it will be similar to that of England, a country considered a reference for the sector around the world” .
“This version of the facts generated a certain embarrassment, since many of these companies, some of which are publicly traded, operate in England and know that this is not true”, clarified André Gelfi, president of the IBJR.
“The Brazilian tax burden will be at least 350% higher than the English one in the manner presented”, added Gelfi.
Organization points to ‘bad news’
For the institute, ‘the bad news does not stop there’. After all, higher taxes can cause customers to opt to play on ‘unlicensed sites’.
While the “high operating cost will not allow companies based in Brazil to offer the same odds/odds that gamblers are used to and that they can obtain on illegal sites in Brazil or abroad”.
The Institute reiterated its full support for a total tax composition equivalent to that of the United Kingdom. However, “does this not only because it believes that this is the best model for the sustainable development of the igaming production chain in Brazil”.
“But also to warn of the risk of an instantaneous disruption of the flow of resources that has helped to irrigate the sports ecosystem in the country”.
The full statement from the Brazilian Institute of Responsible Gaming can be accessed here.
About the 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, 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.
