At an event on Tuesday (10), the Vice President of the Republic, Geraldo Alckmin, said that the Federal Government can work together with the National Congress to bring forward the collection of taxes provided for in the tax reform, including the selective tax, on sportsbooks.
It is worth remembering that the regulation of sports betting companies in Brazil follows the rules defined by the Ministry of Treasury, since January 2025.
The proposal was presented by the Brazilian Association of Supermarkets (Abras) during an event in Brasília
Recently, last Sunday (8), the economic team proposed increasing the tax from 12% to 18% on the GGR (Gross Gaming Revenue) of betting houses, which is the gross revenue obtained by companies. In other words, the total collected from bets minus the amount paid in prizes to players.
Increased taxation of betting houses presented as an alternative to IOF
The measure to increase taxation on betting houses is an alternative to the decree that increased the Tax on Financial Transactions (IOF).
“The government’s proposal is to increase it to 18%, but we can work with Congress to be able to take another leap,” said Alckmin during the 5th edition of the Abras National Supply Chain Forum.
The text of the tax reform regulation provides that sports betting, bets and products will pay Selective Tax, as a way to discourage gambling habits. The Ministry of Treasury projects that the Value Added Tax (VAT) should be around 28%.
“We need to increase the tax [on bets]. I liked your proposal [Abras]. Not just 18%, which is the government’s proposal, but 27%. This will prevent many families from being harmed,” Alckmin said at the event.
Furthermore, also during the Abras forum, the vice president defended that sportsbook advertisements contain a “misleading advertising” warning, as established by the Consumer Protection Code.
“In betting, we should apply the Consumer Protection Code, which provides for misleading advertising. Saying that a person will become rich and a millionaire by playing betting is clearly misleading advertising,” said the vice president.
