Last Thursday (15), it was sanctioned by President Jair Bolsonaro Law nº 14.183, which changes the taxation of sports betting to the Gross Gaming Revenue (GGR). The new rule changes Law No. 13,756, of December 12, 2018 (fixed-odds betting). In this way, the gross profit of the operation (GGR) is now considered instead of the sum of all bets made (turnover).
The law provides that the proceeds from the collection of fixed-odds betting lottery in physical or virtual media will be used to pay prizes, to pay the contribution to social security levied on the proceeds of the proceeds at rates of 0.10% (ten hundredths percent), in the case of bets on physical media, and 0.05% (five hundredths percent), in the case of bets on virtual media, and the payment of income tax on the prize.
The lawyer specializing in Sports Law Daniel Kalume, a partner at Mota Kalume Advogados, explains that this change will enable an optimistic tax collection for the country: “The legislative change is the legal framework for the sports betting sector, enabling tax collection, which did not exist until the moment, and unlocking this market of billion dollar figures.”
For Kalume, the law is the first step taken by the Union to bring due legal certainty in line with the best practices of the international market. “The expectation now is that the Ministry of Economy finalizes the regulation of the matter still in 2021 and Brazil can receive as soon as possible the international investments of the sports betting sector,” he highlights.
Regulation
Lawyer Luciano Andrade Pinheiro, a member of the National Academy of Sports Law and a partner at Corrêa da Veiga Advogados, explains that with the publication of Law 13.756/2018, sports betting moved from the level of illegality to legality in Brazil.
“The rule provided for the Federal Government, specifically the Executive, to regulate the way sports betting operators operated within two years. The current administration, in the first half of this year, determined that the BNDES should carry out a study for this regulation, helping to streamline the process,” he emphasizes.
The expert also points out that Congress, in the Bill of Conversion of Provisional Measure 1034/2021, resolved the thorniest issue in the Government's relationship with betting operators.
“The bill already provided that the government would adopt the GGR regime or taxation on net income from betting, which was a demand of operators. With this step, I believe that the regulation of other matters related to this sector will be less troubled and can finally be released,” concludes lawyer Luciano Andrade Pinheiro.
Source: Rota Jurídica
