The intermediaries work as a platform that connects the lottery company (from Caixa Econômica Federal) to the customer. This digital platform attracts an audience because it allows citizens to place a fractional bet, paying less than the minimum required by Caixa, of R$30 (US$ 5.75) per bet.
Aidiglot brings together 10 companies that earn R$ 220 million (US$ 42m) per year. Headquartered in Brazil, they pay the taxes required by law, such as ISS, PIS/Cofins, Income Tax and Social Contribution, and generated around R$ 46 million (US$ 8.8m) in taxes in the last 5 years. The 140% increase would therefore generate an additional R$ 64 million (US$ 12.5m) to public coffers.
The intermediation activity is provided for in article 653 of the Civil Code, which provides for the "mandate operation", according to the association.
However, the lack of a regulatory framework causes restrictions on the placement of advertisements on internet search engines; reduced credibility with the public; lack of authorization to make the applications of intermediary companies available; increased operating costs; and absence of an electronic interface for registering games, "which obliges intermediaries to deal with physical tickets, being responsible for guarding/filing and collecting/transporting them," informs Adiglot.
Currently, the lottery market in Brazil is centralized, answering to a single company - Caixa Econômica Federal, which generates a scenario of monopoly of activities.
The emergence of intermediaries comes precisely to expand the sector and ensure greater reach to the final public, decentralizing the direct sale of the lottery product, in a regulated manner, from just one company.
Betting over the internet in the sights of Finance
The universe of internet betting is in the crosshairs of the Ministry of Finance, which intends precisely to increase tax collection.
Minister Fernando Haddad said during UOL Interview last week that the government intends to compensate for the drop in revenue resulting from the increase in the Income Tax exemption ceiling by charging taxes on virtual bets. In focus are "fixed-odds bets".
According to Haddad, the portfolio estimates that tax collection on the sector may vary between R$ 2 billion (US$ 3.85b) and R$ 6 billion (US$ 1.15b).
The ministry is mapping the types of websites that offer the greatest risk of tax evasion and designing a project to be presented to the Executive and Congress.
The regulation will change the current law and require companies to have their headquarters in Brazil.
Fixed-quota in sports result predictions
Basically, Finance's initiative aims to tax fixed-odds betting sites on predictions of sports results in games organized by confederation, federation or league.
In other words, the idea is to charge a tax on the betting site on the result of football, volleyball, basketball, tennis, etc.
For example: Corinthians and Palmeiras will compete in the final of a championship organized by the CBF (Brazilian Football Confederation) and the site makes bets with fixed odds — and pays five times each quota of R$ 10 (US$ 1.9).
The person buys two quotas (spends R$ 20 –US$ 3.8-) and if the team wins, he receives R$ 100 (US$ 19). It is on this amount of quotas that the government wants to charge a fee.
Source: UOL
