Representatives of the betting sector requested a hearing with three ministers of the Federal Government on Tuesday (3). The concern arises due to the possibility of increasing taxation on sports betting to compensate for the adjustment of the Tax on Financial Transactions (IOF).
Ministers Fernando Haddad (Treasury), André Fufuca (Sports) and Celso Sabino (Tourism) are the targets of the meeting request. The betting sector entities want to warn about the risks of making the regulated market unviable if new tax increases occur.
According to industry entities, current taxes already consume around 50% of the segment’s revenue. Furthermore, they argue that additional taxes would lead many companies to give up renewing their five-year licenses.
Mobilization context
The articulation of the entities occurred after the meeting held on Monday (2). On that occasion, Haddad met with Hugo Motta (Republicanos-PB), president of the Chamber, and Davi Alcolumbre (União-AP), president of the Senate.
During the conversation, options for reversing the increase in the IOF were discussed. However, this government measure, implemented to meet fiscal requirements, generated dissatisfaction among executives and parliamentary leaders.
Among the alternatives considered at the meeting, a proposal emerged to cancel the adjustment of IOF rates. In return, there would be an increase in the collection of taxes on sports betting.
Consequently, bookmakers’ representatives released a manifesto last Tuesday. The document therefore expresses concern about the potential increase in the tax burden.
The entities stated: “The adoption of measures that compromise legal operations tends to cause an effect opposite to that desired: the strengthening of clandestine platforms, which do not collect taxes, do not respect regulatory standards and expose consumers to risks of fraud, gambling addiction and other vulnerabilities, as has been observed in recent decades.”
Organizations that signed the document:
- Brazilian Association of Games and Lotteries (ABRAJOGO)
- Betting and Fantasy Sports Association (ABFS)
- International Gaming Association (AIGAMING)
- National Association of Games and Lotteries (ANJL)
- Brazilian Institute of Responsible Gaming (IBJR)
- Brazilian Institute of Legal Gambling (IJL)
