The project initiated in the Chamber of Deputies deals with rules for authorizing the operation of this type of betting. It also stipulates the percentage of federal revenue from taxing companies, which will be allocated to various areas such as social security, sports, and tourism. The topic has sparked criticism from lawmakers who point out the social risks of gambling and its potential use for money laundering. Fixed-odds betting has been legalized since 2018.
José Francisco Manssur, Special Advisor to the Ministry of Finance, explained the most important points of the regulatory proposal sent by the federal government. According to him, the most immediate need is to rectify the loophole that allows these services to operate without paying taxes, which constitutes a "serious tax distortion."
"The segment has been operating in Brazil from 2018 until today without paying taxes. Nothing is more unfair than essential services, like those who produce food and clothing, and workers paying their taxes while this segment pays nothing. People are gambling: out of ten Brazilians with access to a mobile phone, seven have already placed some bet," he stated.
Manssur asked parliamentarians to approve the project because, according to him, only with legislation in force will it be possible to address the problems that betting critics denounce. He spoke of the ministry's concern with negative externalities such as money laundering loopholes and the match-fixing industry, and highlighted cases of ludopathy – addiction to gambling.
"The operator has to inform us of the time a person spends in front of their phone playing, the maximum loss limit, and the pause period. They have to exclude people showing signs of addiction. All of this can only be achieved through regulation. The current unregulated environment leaves us powerless to act."
Senator Eduardo Girão (Novo-CE), who presided over the hearing, drew attention to cases of people who face financial difficulties. Manssur emphasized the need for a "responsible gambling policy."
"Gambling is not a means to get rich. Most people lose money while gambling. Don't believe the advertisements," he warned.
The lack of regulation also affects official lotteries, as argued by Bruno Pires Lobato, President of the National Association of Lottery Operators (ALSPI). He denounced the "unfair competition" that benefits online betting houses.
"If we fail to comply with the rules, the next day our lottery machines are turned off. I don't understand how these websites have been operating for five years without generating taxes, destroying our jobs, and taking foreign exchange out of the country," he said.
Ricardo Liáo, President of the Financial Activities Control Council (Coaf), praised various aspects of the law, especially the rules that would be required of betting services to verify the validity of user identification.
"The 'know your customer' policy is the main instrument for developing mechanisms and internal controls capable of assessing financial behavior. It is through this approach that many issues related to crimes are revealed. It would be very important as a means of mitigating money laundering," he stated.
The control of financial transactions was also highlighted by Vilson Antonio Romero, President of the National Association of Federal Revenue Auditors of Brazil (Anfip). He also drew attention to the allocation of taxes, criticizing the smaller share allocated to social security—2% of revenue, compared to 5% for tourism and over 6% for sports.
Source: Agência Senado
