A general decree to reorganize the structure of the portfolio commanded by Fernando Haddad should come out in the coming weeks, with the inclusion of the new secretariat.
News outlet O Globo had access to the design of the organization chart, which is already being assembled. In all, there will be four subdivisions: undersecretariat for accreditation; monitoring; oversight; and sanction. There will be at least 54 positions, 60% of them already defined. But the ministry's technicians are still negotiating an increase to 65 positions. The new secretariat should cost about R$ 4 million (US$ 815,000) a year, with technology equipment and field agents.
The accreditation undersecretariat will be responsible for the authorization process of the companies, document analysis and payment of the grant. The company will need to have a CNPJ in Brazil. This undersecretariat will also be responsible for the collection and destination.
The investigation will be concentrated in the undersecretariat for monitoring, which will be headed by a delegate from the Federal Police. The name has not yet been informed. The department will have the market surveillance systems in Brazil, with analysis of information on possible illicit practices, such as manipulation of results and money laundering.
In the inspection undersecretariat, the focus will be on companies that are already accredited and operating in the market, being responsible for verifying that they are complying with the compliance rules. The undersecretariat of sanctioning actions will be responsible for initiating administrative processes for the application of possible punishments in cases of irregularities.
70 interested companies
To obtain the operating license in Brazil, each operator will have to pay an authorization fee in the amount of R$ 30 million (US$ 6.1m). Members of the Ministry of Finance estimate that at least 70 companies are already interested in regularizing betting activities in the country. It will be between five and 10 years of license for operations. Technicians are still studying the ideal time.
Haddad's allies also hope that American sports betting companies will become interested in the Brazilian market. This is because these companies are listed on stock exchanges and can only operate in regulated markets. The expectation is that Brazil will become an attractive market from the regularization. Just with the regularization of the companies, the government hopes to raise R$ 2 billion (US$ 407m) in 2024, but the value should increase over the years, when the sector consolidates. The estimated annual collection could be between R$ 6 billion (US$ 1.25bn) and R$ 12 billion (US$ 2.5bn).
As the market is not regulated, the technicians at Finance are working based on projections from entities and associations in the sector, considering companies already in operation and the possible entry of new bookmakers. In addition to the initial grant, a fee of 18% will be charged on the companies' gross revenue for each event. This tax — called Gross Gaming Revenue (GGR) — is practiced in other countries and is typical for gambling activities.
“This industry-specific fee is known as Gross Gaming Revenue, charged “per event”, i.e. per game or match," says tax lawyer Mozar Carvalho, who works in the area.
Return of Lotex
The amount does not affect prizes paid to players and does not exclude the obligation of companies to pay other taxes, such as Corporate Income Tax (IRPJ) or Tax on Services (ISS). The prize received by the gambler will now be taxed at 30% on the Income Tax (IRPF), with the exception of prizes of up to R$ 2,112 (US$ 430), which are exempt.
Whoever plays and does not win will not have to pay tax. The money raised with the GGR will be divided as follows: 10% will be allocated to Social Security; 3% for the Ministry of Sport; 2.55% to the National Public Security Fund (FNSP); 1.63% for sports clubs; 0.82% for basic education.
In addition to sports betting, the new secretariat will also take care of other betting systems that already exist in the country, such as Loterias Caixa. The Ministry of Finance will also start to monitor any type of promotion made by companies and stores. The Lula government also wants to take back Lotex, known as ‘raspadinha’ (scratch-cards). But, for that, a bidding process will be opened to choose a single operating company. The ‘raspadinha’ will not have competitors, unlike the sports betting sector.
Source: O Globo
