Senator Angelo Coronel (PSD-BA) is the rapporteur of the betting regulation project at the Senate‘s Economic Affairs Committee (CAE).
PL 3,626/2023 establishes rules for authorizing the operation of betting systems, the advertising of these games and the destination of taxes on revenue, among other measures.
The agenda was approved by the Sports Committee this Wednesday, 8th. After passing through both committees, the text will be analyzed in the Senate Plenary.
Senator proposes changes to the betting regulation project approved by the Chamber
One of the changes proposed by Angelo Coronel refers to the term of the license granted by the Federal Government. The proposal provided for a value of 30 million reais for a three-year grant.
The rapporteur is extending this period to five years, granting permission for the company to manage up to two betting platforms.
According to Bahia Notícias, another change concerns the taxation of Income Tax both on the profit earned by the bettor and on the amount bet.
Therefore, Coronel stipulated the charge only based on the profit earned. “If you bet a thousand reais, and the game pays 1.5 thousand, theoretically you will receive the thousand you bet and 500 of the capital gain”, he said in an interview with Bahia Notícias.
“The Chamber was taxing both capital gains and invested capital. We are going to change this so that the rate only applies to capital gains. It was a mistake on the part of the Chamber that we will correct. In other words, we are reducing the tax on the profit made on the bet from 30%, as stated by the Chamber, to 15%”, he added.
Angelo Coronel proposes reducing taxation to encourage legal gambling
To defend this change, the rapporteur argues that there are currently expected to be 10,000 betting sites. According to the senator, most of these companies will not be able to pay 30 million reais, which could encourage the operation of irregular websites.
“I am proposing to reduce the tax on profits from 30% to 15%. And, I will still discuss, both with the government and the Chamber, to reduce it even further, so that we can prevent players from escaping from the regularized website to the clandestine website”, he pointed out.
“This way, people will play on the government-approved website, with their concession validated. And, with this, the government will raise more money by having more players on the official website”, he added.
However, the rapporteur kept the transfer values approved in the betting regulation project in the Chamber of Deputies, in September.
According to the project, 2% of the amount will go to social security, while 6.68% will be distributed in the area of sport, 4.3% in tourism, 0.5% in health and 0.15% divided between assistance entities of civil society.
“If all these current sites are regularized, we will have revenue above expectations. The important thing is that we are seeking to meet the government’s expectations, the betting houses’ expectations, the players’ expectations, and working in common agreement with the Chamber of Deputies”, he concluded.