Division of sports betting sector resources mobilizes the National Congress
Brasília - Chamber of Deputies holds a plenary session to analyze and vote on the complementary bill (PLC 257/16) that deals with the renegotiation of state debt (Marcelo Camargo/Agência Brasil)

Resources from the taxation of sports betting, regulated by a provisional measure last week, are already agitating the National Congress.

Almost 200 suggestions for amendments to the original text of PM 1,182 had been filed by deputies and senators until this Monday, the 31st, before the closing of the deadline set by the rules for the presentation of proposals.

The project sent by the Federal Government to Congress defines that bookmakers are taxed at 18% on the so-called “Gross Gaming Revenue” (GGR).

This is the income obtained from all games after paying prizes to players and paying Income Tax on the prize pool.

Projection of the Ministry of Finance for the sports betting market

The Ministry of Finance projects collection of at least R$ 2 billion in 2024.

In the following years, estimates range from R$ 6 billion to R$ 12 billion.

In the PM for sports betting, the government distributed the 18% tax as follows:

  • 10% for social security;
  • 3% for the Ministry of Sport;
  • 2.55% for the National Public Security Fund;
  • 1.63% for clubs and athletes whose names and symbols are linked to bets;
  • 0.82% for basic education.

Amendments

However, this structure can be changed. “[The amendment] aims to preserve the physical and psychological integrity of military police officers, who are routinely exposed to risk and stress situations. This exposure is reflected in physical and mental disorders, such as high blood pressure, panic disorder, depression, anxiety and suicidal behavior”, says Deputy Sargento Portugal (Podemos-RJ) in the justification.

Jonas Donizette (PSB-SP) intends to donate 1.5% to the General Tourism Fund, and Fred Linhares (Republicanos-DF) would like to dedicate 1% to vocational schools in the S System, such as Senac and Senai.

Former Minister of Agriculture and Senator Teresa Cristina (PP-MS) proposes: “Brazil has borders with ten of the 12 other countries in South America, with a total length of 16,885 km, and needs increasing economic contributions, aiming to guarantee the security of Brazilian borders”.

While a group of left-wing lawmakers are targeting a 0.5% slice of revenue for the Ministry of Racial Equality. “The recent cases of racism in sport, but specifically in football, have opened up the structural nature of racial discrimination in Brazil”.

Deputy Weliton Prado (Solidariedade-MG) suggests allocating 0.25% to the National Fund to Combat Cancer, which does not yet exist and would need to be instituted by law.

Deputy Pompeo de Mattos (PDT-RS) wants to allocate 0.3% to federations of beekeepers and honey producers. “With bee pollination, sunflower production can increase by up to 75%. The apple can have an increase of up to 94%. In soybean plantations, in addition to reducing the application of pesticides, productivity increases by 25%”, he explained.

Deputy Antônio Carlos Rodrigues (PL-SP), in turn, wants to give punters the possibility of collaborating with samba schools and with the Parintins boi-bumbá.