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Brazil – Tax Rate confirmed during public hearing on sports betting

By - 17 April 2023

The Finance and Taxation commission in the Chamber of Deputies held a public hearing to discuss the regulation of sports betting.

Deputy Júnior Mano, who asked for the debate, reminded fellow lawmakers that it had been the Temer government which had enacted Law 13.756/18, which governs the permission and regulation for the operation of sports betting sites in Brazil.

“These companies can even sponsor private institutions and advertise their services in various media. Several Serie A clubs in the Brazilian championship have sports betting sites branded on their shirts,” he said.

According to the deputy, well known sports betting operators receive a high volume of money and, consequently, a significant profit. “Part of this profit is converted into sponsorship for the clubs and, in exchange, the bookmakers receive advertising and publicity for their brand. This way, more profit is generated and more money can be invested in the development of the team – a lucrative system for both parties,” he said.

The debate was held last week and attended by members of the sector and institutions such as the National Association of Games and Lotteries (ANJL), the Brazilian Institute of Responsible Gaming (IBJR), the Gambling Commission of Brazilian Bar Association (OAB) and the Federal Revenue of Brazil (RFB) which is in charge of federal taxes on individuals and companies.

The special adviser to the executive Secretariat of the Ministry of Finance José Francisco Manssur, who represented the Ministry of Finance, was also present.

As well as confirming the taxation of 15 per cent on GGR on sports betting at the hearing, Manssur also said that measure will require that sports betting companies have their headquarters in Brazil and will need to meet minimum capital requirement in order to obtain a licence. The tax rate is the same as that in place in the United Kingdom, which has a mature market and a high rate of channelization, Manssur said. In addition, Manssur stated that the Provisional Measure will regulate sports betting only and that casino games will not be allowed, leaving the National Congress to finish discussions on the legalization of other types of games.

During the debate, Deputy João Carlos Bacelar Batista, a long time supporter of a liberalised market, along with other pro gaming deputies stated that the Chamber had already approved a proposal that legalizes all gambling in Brazil – Bill 442/91 where it is being processed as PL 2234/22 in the senate.

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