Deputy Felipe Carreras (PSB) should report on the Provisional Measure that regulates sports betting in Brazil. Among the measures that should be included in the PM, the Lula government would tax companies in the sector with a percentage set at 15% of the GGR (Gross Gaming Revenue) – gross revenue minus the prize paid to gamblers.
According to what has been reported in the press, the regulation of sports betting will stipulate that in order to operate, all sites must have a business unit in Brazil and, if they do not, they will be prevented from advertising in the country and sponsoring clubs and championships.
And for these companies to settle in Brazil, they must pay a license fee of R$ 30 million (US$ 5.9m), valid for five years.
In addition, it is speculated that the technicians of the Ministry of Finance who are preparing the final text of the Provisional Measure determined the incidence of 15% of the GGR (Gross Gaming Revenue) – gross revenue minus the prize paid to gamblers – of taxation for companies.
The percentage of tax to be applied takes into account examples applied in countries where the activity is regulated. The best one is what happens in the United Kingdom, which defined the same 15% taxation, which meant that almost 90% of the companies authorized to explore the activity remained operating on a regular basis. Furthermore, it kept bettors on regulated sites, preventing currency evasion and users from using foreign or non-regulated sites.
The Ministry of Finance sent the draft final text to the Attorney General's Office of the National Treasury, which assesses the document from a constitutional point of view.
At the same time, the Ministry has been listening to market players, as well as football clubs and sports organizations to add any contributions to the text that will be taken to Parliament for consideration.
One issue has aroused concern in the sports betting industry. The clubs and the Brazilian Football Confederation (CBF) itself want to capture a larger share of the tax burden, which can generate a mismatch between what is good and what is fair. CBF, for example, wants to receive 4% of gross revenue, claiming right to use image. The clubs are currently discussing taking the concentration of revenue out of the hands of the CBF.
Source: GMB
