The National Congress scheduled for this Wednesday (24/4) the vote on the vetoes imposed by President Lula on the law that regulates sports betting in the country. The final decision in the hands of parliamentarians will determine whether the sector will have a definitive boost or whether it will face unexpected obstacles.
One of the main points of contention is the income tax exemption for prizes up to R$2,100. Lula vetoed this exemption, contrary to the wishes of sector entities who consider it crucial for the development of the market.
The National Association of Games and Lotteries (ANJL), for example, argues that taxing prizes could reduce the revenue expected by the government and even discourage investment in the sector.
In defense of the exemption, ANJL carried out a comparative study with European regulations, finding that only Greece specifically taxes bettors’ prizes.
The entity also claims that the exemption already exists in other segments, such as the lottery, and that this measure would bring benefits to the country.
The debate over Lula’s vetoes involves several other important points. The law, sanctioned in December 2023, establishes that betting companies must have headquarters and administration in Brazil, in addition to paying a fee of R$30 million to operate in the country.
The law also prohibits betting for anyone under 18 years of age.
Entities that defend the veto on sports betting
Entities such as the Brazilian Fantasy Sports Association (ABFS) and the Brazilian Sports Betting Association (ABAESP) also defend the overturn of the veto on income tax exemption.
They argue that the measure will stimulate market growth, generating more jobs and income for the country.
Therefore, the result of the vote in the National Congress will be fundamental in determining the future of sports betting in Brazil.
