Senator Eduardo Braga (MDB-AM), rapporteur of the bill that increases taxes on online betting companies (known as bets), established a clear condition for moving forward with the proposal: the federal government needs to crack down on illegal operations before discussing any increase in tax rates.
According to data presented by the legislator, unauthorized websites generate approximately R$ 100 billion per year in Brazil, creating an environment of unfair competition.
The bill is scheduled to be voted on in the Senate this Tuesday (18). However, Braga warned that the Ministry of Treasury and the Central Bank could cause the vote to be postponed if they do not present concrete measures to block irregular transactions carried out through Pix.
The senator described the current situation as a “regulatory vacuum” that simultaneously benefits illegal gambling sites, unregulated fintech companies, and organized crime.
Progressive taxation depends on combating illegality.
Currently, regulated online betting companies pay 12% on gross betting revenue. Senator Renan Calheiros’ initial proposal suggested doubling this rate to 24%.
However, Braga considers this approach inadequate as long as illegality persists without effective oversight. The rapporteur argues that raising taxes only on legally operating companies, without closing the door to illegality, would result in an increase in illegality itself.
In this way, legal operators would feel harmed by paying double the taxes while illegal competitors contribute nothing to the tax authorities.
Therefore, the government’s priority should be to shut down the activities of illegal fintech companies and unauthorized payment processing companies, which act as entry and exit points for money from illegal gambling, organized crime, and money laundering.
Furthermore, the legislator presented an alternative: if the government manages to effectively block illegal operations, bettors will naturally migrate to authorized platforms.
Consequently, this will increase the volume, profitability, and results of regular companies. In this scenario, taxation could be raised gradually without generating resistance from the sector.
Control over atypical transactions in the financial system.
Braga spent part of his morning talking with the president of the Central Bank, Gabriel Galípolo, demanding concrete measures. The Federal Revenue Service identified the movement of approximately R$ 50 billion through illegal fintechs and unauthorized betting companies.
To effectively combat organized crime, it is essential to establish strict control over the flow of money.
Brazil has managed to integrate 93% of the money supply into the banking system. However, it has not yet developed effective mechanisms to monitor the digital environment. Paper money currently represents only between 5% and 7% of the total money supply.
On the other hand, virtually all money is held in banks and moves through digital payments or credit cards.
Illegal gambling, unregulated fintech companies, money from organized crime, and money laundering primarily occur through bank accounts and Pix keys.
The senator clarified that he is not proposing to control Pix itself; instead, he advocates for monitoring remittances to electronic keys with atypical transactions.
When thousands of people send transfers to the same email address, this indicates an irregular pattern that warrants investigation.
Taxation on fintechs and revenue projections
Regarding CSLL (Social Contribution on Net Profit), the original bill proposes increasing the rate for banks from 15% to 20% and for fintechs from 9% to 15%. Braga indicated that these rates depend on the overall scenario and cannot be treated in isolation.
According to the rapporteur, the sector needs to contribute in a balanced and proportional way, and it is necessary to establish differentiations because fintechs present significantly higher profitability.
Regarding the project’s ability to cover the projected R$18 billion in income tax exemptions, the senator presented calculations based on tax evasion. If the estimate of R$100 billion in illegal transactions is confirmed, the 12% that these operations would currently be subject to would generate R$12.2 billion.
By closing the door to illegality, part of this volume would migrate to legality, expanding the tax base. In this context, the increase would not need to reach 24%, allowing for a phased increase that would reach R$ 18 billion much more easily.
