The state of Rio Grande do Sul has just taken an important step towards the regulation of sports betting at the state level. A subcommittee was created in the Legislative Assembly that will discuss the topic and, at the opportunity, the sector was represented by executives from KTO and Betsson, who were born in Rio Grande do Sul, in addition to other directors of entities in the segment, such as Rodrigo Alves from ABAESP.
“In addition to the joy of seeing the receptiveness of the members of the subcommittee that will discuss sports betting in the Legislative Assembly to the Brazilian Institute of Responsible Gaming (IBJR), it is encouraging to see the intention of parliamentarians to regulate the sector within the scope of Rio Grande do Sul,” said Andre Gelfi to GMB.
“It was an honor to meet the Governor of Rio Grande do Sul Eduardo Leite and his fantastic team to discuss the coming regulation of sports betting and also the potential of the iGaming industry. I am also very pleased that the president of IBJR and Brazilian iGaming pioneer Andre Gelfi could join,” said Andreas Bardun after the meeting.
The delegation was also received by the governor of Rio Grande do Sul, Eduardo Leite, accompanied by the main authorities of the state, such as the secretaries of the Civil House, Planning and Finance, which demonstrated to the group the good intention of the local government to support the activity and attract companies in the sector to Rio Grande do Sul.
“The government of Rio Grande do Sul is looking very carefully at our activity, and at the meeting we made it clear how much the sector can contribute to economic development in Brazil and particularly in the state,” commented Gelfi.
“We cannot forget that Lotergs is the oldest lottery in Brazil and it will play a leading role in the management of sports betting operations in the state,” believes Gelfi. “The hearings were very productive and encouraging due to the fact that Rio Grande do Sul is opening its doors to an economic activity that will have a very positive impact on state finances,” highlighted Gelfi.
Regarding federal regulation, the IBJR leader commented that “at the last meeting we had at the Ministry of Finance, those responsible for the process guaranteed that the Provisional Measure would be presented by the end of April. We are closing the month and we wait for the edition at any moment.”
The concern that the Institute took to the Treasury directors and commented by Gelfi with GMB was the issue of taxation of sports betting. “There is talk that we will pay 15% tax on the GGR and that the load is small. In fact, there is a misinterpretation, since in addition to the 15% on the GGR, there are other taxes levied on the provision of this service. Added to PIS, Cofins and ISS, the total charge will be between 26% and 29%,” he clarified.
The National Congress needs to understand, according to André Gelfi, that this load is the maximum bearable limit for the development of the sports betting market in a sustainable way. “More than that, countless players will continue to operate in the parallel market and this could compromise the result that the government expects in terms of revenue. Everyone needs to understand that raising taxation will be detrimental to the activity as a whole,” concluded André Gelfi.
Source: GMB
