The Senate’s Economic Affairs Committee (CAE) held a public hearing yesterday to discuss the impacts of the Tax Reform on the Selective Tax on the online gaming and betting market. André Gelfi, president of the Brazilian Institute of Responsible Gaming (IBJR), was invited to speak on the topic, focusing on the competitiveness of the market in the face of irregular competition.
Gelfi began by highlighting the great challenge the sector faces. According to him, the betting market in Brazil is in a state of “limbo” pending definitive regulation.
Thus, regulation, expected to be implemented soon, with consolidation expected by January 2025. He highlighted: “Regulation is essential to formalize the sector and control externalities, which are currently out of control.”
He emphasized that competition in the formalized market will be directly against parallel market operators, many of whom operate from outside the country.
The number of illegal sites is unknown, but for the legal market to be competitive, “the tax burden is a determining factor”, according to Gelfi.
Therefore, he highlighted that taxation is one of the main measures that need to be adjusted to guarantee the viability of the formal market.
Gelfi also mentioned the 12% tax already approved in the Chamber, equivalent to the Selective Tax, stating that “this tax burden already represents a challenge within the regulatory framework.”
According to the president of IBJR, it is crucial that taxation is competitive to prevent legal operators from losing space to the irregular market.
About IBJR
The Brazilian Institute of Responsible Gaming (IBJR) is an entity dedicated to promoting safe practices in the gaming and betting sector in Brazil. Focusing on creating a competitive and fair environment, IBJR brings together market operators to foster dialogue with authorities and society.
Ultimately, the organization aims to ensure that the regulation of online betting is effective. Thus, protecting consumers and combating the actions of illegal operators, promoting a safer and more responsible market in the country.
