Deputy Adolfo Viana (BA) was announced as rapporteur for the bill that regulates the taxation of sports betting. The proposal is part of the government’s package of actions to increase revenues.
The proposal regulates the practice in Brazil, combating irregularities and fraud in the sports betting market.
The project predicts that for bookmakers to explore the sector they will need to have internal control processes and systems to prevent money laundering, terrorist financing, match fixing and other problems.
According to the text, in the case of suspicions of match-fixing, the Ministry of Finance must determine, in a precautionary manner, the immediate interruption of bets and the withholding of prizes.
The project was presented by the Federal Government and forwarded to Congress in July. In addition, the Executive sent a provisional measure related to the taxation of sports betting.
To speed up the processing of the two issues, the tendency is for the rules established in the MP to be incorporated into the project that will be reported by Viana.
Sports betting tax
According to the sports betting MP, companies will be taxed at 18% on the so-called Gross Gaming Revenue (GGR), which is the revenue obtained from all bets placed, subtracting the prizes paid to bettors.
On the prize received by the player there will be taxation of 30% referring to Income Tax, respecting the exemption of BRL 2,112.
The money collected from the sports betting tax will be divided as follows:
• 0.82% for basic education;
• 1.63% for sports clubs;
• 2.55% for the National Public Security Fund (for actions to combat betting manipulation, money laundering and other acts of a criminal nature that may be practiced in the context of betting);
• 10% for social security; It is
• 3% for the Ministry of Sports.
The Ministry of Finance calculates to collect up to R$ 2 billion in 2024 with the collection of taxes. With the new rules, projections vary between R$ 6 billion and R$ 12 billion in the coming years.
