Treasury Minister Fernando Haddad ignored a formal request for an “urgent meeting” made by the gambling industry. However, the request for a meeting came just days before the federal government increased taxes on these companies. The associations expressed “deep concerns” to the minister in the document sent on the 2nd.
Betting taxation rises from 12% to 18%
Taxation on the revenue of betting companies has increased from 12% to 18%. The measure came into effect on Wednesday (11) and the new percentage will be valid from October.
This initiative is a provisional measure that serves as an alternative to the Planalto Palace. The objective is to avoid an increase in the Tax on Financial Transactions (IOF).
The entities also requested meetings with the presidency of the Chamber and three ministries: Civil House, Tourism and Sports.
The Ministry of Sports stated that it does not have jurisdiction to discuss the taxation of betting. It only acts to combat the manipulation of results in sporting events. Therefore, the Civil House, Tourism and the Chamber did not respond to the requests.
In this sense, the document, presented by the sector entities on the 2nd, states: “We address Your Excellency, with due respect, to request, as a matter of urgency, a hearing to express our deep concerns about news that indicates the possibility of a new increase in the tax burden on the betting sector.”
They are:
- Brazilian Association of Games and Lotteries (ABRAJOGO)
- Betting and Fantasy Sports Association (ABFS)
- Associação Internacional de Gaming (AIGaming)
- Associação Internacional de Gaming (AIGaming)
- Instituto Brasileiro do Jogo Responsável (IBJR)
- Instituto Jogo Legal (IJL)
Also according to the letter sent at the beginning of the month, the increase in the tax burden may have serious consequences. The document details that “it may have severely adverse consequences, risking the foreign operations and, paradoxically, strengthening the illegal market that operates on the margins of state legislation and inspection.”
Betting sector sees more difficult dialogue with Haddad
Representatives of betting companies told Coluna do Estadão that the dialogue with Fernando Haddad has become more complex. A statement by the minister on Thursday demonstrated this distancing.
Thus, Fernando Haddad stated: “We do not have a dimension of the (betting) sector, the size of the sector. This sector today, between what it receives from bets and what it pays out in prizes, is making a gross profit of around R$40 billion annually. This is a normal company.” The statement was made one day after the measure that increased taxation.
Betting has been operating legally for six months
The gambling law was sanctioned in Brazil in December 2023, after approval by the National Congress. In 2024, the Ministry of Treasury regulated the issue, detailing the rules for the operation of the sector.
Finally, to operate for five years in the country, each company paid a fee of R$30 million. In addition, they must comply with a series of legal standards, such as combating fraud, money laundering and abusive advertising.
