MIÉ 18 DE SEPTIEMBRE DE 2024 - 22:33hs.
Adolfo Viana

Rapporteur of Brazil’s sports betting bill admits creation of progressive rate from 8% on GGR

The rapporteur of the bill that will regulate online sports betting in Brazil, federal deputy Adolfo Viana, wants to publish the text by this Wednesday (6), but is still articulating changes with party leaders. Among them, the fee to be charged from companies should be reduced. Operator firms ask for a value between 8% and 10%. The government wants 18%. Viana studies a middle point between both positions.

The rapporteur of the proposal in the Chamber of Deputies considers placing a progressive rate in the Bill, starting with a lower value in the first years and being revised by the government, in a period to be defined. Adolfo Viana pointed out that charging needs to be feasible, in order to attract the greatest number of companies to the regular market.

“The government's Provisional Measure (PM) is a starting point, but we need to listen to the sector. The aim is to formalize 100% of the sites in operation in Brazil. We need to find a final wording that makes it possible to regulate everyone. The sector asks for a decrease in the rate. Let's talk to try to reach a number that is possible. If we tax too much, informality will prevail,” he told GLOBO.

The PM edited by the Minister of Finance, Fernando Haddad, provides for a tax of 18% on the gross revenue of companies for each event. According to what is established, an event is a set of bets placed in each round of the Brazilian championship, for example. The PM will expire this week and will only be worth the rules of the Bill.

“You can find a way to increase the rate year by year, until you reach a value that meets the government's needs,” he explained.

In another passage, the government's PM still establishes a 30% charge of Individual Income Tax on prizes won. Deputy Adolfo Viana recalls, however, that the same player can win different prizes throughout the month, even if they are of low value. He suggests taxing the sum of earnings over a given period, be it a month or 90 days.

"The rate brought by the government in the PM is an amount similar to those charged in lottery, but you don't win in lottery bets every day," he justified.

The government had even established an initial grant, such as an authorization fee, for companies to operate in the country, in the amount of R$30 million (US$ 6.05). Viana also assesses that this amount can be redefined in the project, as well as the division of collection for ministries and folders.

The current text predicts that the money collected will be divided as follows: 10% will be allocated to Social Security; 3% for the Ministry of Sport; 2.55% will be allocated to the National Fund for Public Security (FNSP); 1.63% for sports clubs; 0.82% for basic education.

Adolfo Viana should participate in the leaders' meeting this Tuesday (5) and receive suggestions from deputies for changes in the bill.

Source: GLOBO