PM for sports betting: Government would increase tax on operators from 15 to 16%

This extra amount will be allocated to the Ministry of Sports, with the aim of promoting grassroots sport.

The 16% fee will be split as follows:

• 2.55% will go to the National Fund for Public Security
• 0.82% to elementary school
• 1.63% to clubs, in return for name assignment
• 10% to social security
• 1% to Ministry of Sports

New secretary

The Ministry of Finance also negotiated with Minister Esther Dweck, of Management, the creation of a Secretariat for Betting and Lotteries - which will be foreseen in the PM.

This new structure will be responsible for analyzing documents to approve or not the accreditation of operators in Brazil, as well as for monitoring the volume of bets and collection.

To compensate for the increase in expenses, the Ministry of Finance suggests using the revenues from the payment of grants, which will amount to R$ 30 million (US$ 5.95m) per operator. The folder estimates that 70 to 100 companies will pay for the grant.

The PM is at the Attorney General's Office of the National Treasury and may return to Finance Ministry this week. Afterwards, it needs to be co-signed by seven7 ministries: Finance, Planning, Management, Sport, Tourism, Health and Civil House

Finance expects the text to reach Congress by May 5th. The government's forecast is to collect around R$ 12 billion (US$ 2.4b) per year with the taxation of bets and with the recreation of Lotex, which will also be foreseen in this PM.

Source: G1