According to people accompanying the negotiations, Viana is considering reducing taxation on companies from the current 18% to something around 12%. The rate will be levied on the GGR, that is, on the revenue obtained from the games, subtracting the prizes paid to players.
The parliamentarian has argued, in conversations with deputies, that the 18% rate would put websites installed in Brazil at a disadvantage in relation to competitors based in tax havens. And the purpose of the project, in his assessment, is precisely to encourage the formalization of this market.
Viana's initiative, however, has faced resistance from colleagues in the Chamber, who defend higher taxation for the sector. Members of the evangelical bench, who by definition are against gambling, have claimed that it is necessary to apply the highest taxation on sports betting – and this has become one of the central points of the negotiation at this moment.
The collection obtained through the taxation of bets should be allocated to social security and also to the areas of security and education. As news outlet Estadão showed in July, before the project was sent to Congress, the government came up with an agreement that proposed that 3% of the revenue be allocated to the Ministry of Sport, in order to boost it to deliver it to the Centrão block.
The reduction in the percentage of taxation, proposed by Viana, would only impact the allocation of funds for security. The others, which also include football clubs, would be spared the cut.
Other ministries are also keeping an eye on this new collection. This is the case of Tourism, currently headed by former Centrão deputy Celso Sabino. The minister is negotiating with Congress a slice of that revenue.
The economic team predicted a collection of R$ 700 million (US$ 141m) with the new charge in the 2024 Budget, but internal estimates estimate that the amount could reach R$ 12 billion (US$ 2.45bn) in a fully regulated market. Deputies speak of up to R$ 25 billion (US$ 5bn). This is because, in addition to taxing bets, the government must charge a grant from sites that wish to operate in Brazil, in the amount of R$ 30 million (US$ 6m).
In addition, the Chamber is considering including in the taxation not only sports betting, but also online casinos, with the argument that 70% of the revenue of the sites comes from this type of operation. The President of the House, Arthur Lira (PP-AL), informed that the novelty may appear in the text, even if it faces resistance from deputies linked to religious benches.
Taxation on gamblers
The rapporteur in the House is also considering reviewing the taxation on the gambler, who would no longer pay for each prize and would start to collect the tax every 90 days, through a matching of accounts (balance between transactions) of gains and losses. This was a demand from sports betting operators, who feared that charging per prize could discourage bettors.
Viana defended this point, claiming that taxation could increase the value of each bet, affecting the attractiveness of the business.
In this sense, there are also talks to expand the exemption range for individuals, currently at R$ 2,112 (US$ 426). Above this amount, a 30% Income Tax rate will apply. The new amount has not yet been defined, but the Chamber is considering expanding the cutoff line to R$10,000 (US$ 2,020).
The change, however, is under study, since the current exemption range is applied to Federal Lottery games and any change should give similar treatment to both types of bets.
In terms of collection, the change does not concern the Treasury, since the income from taxation on the gambler is only "residual". The bulk will come from charging companies.
Division of the collection according to the proposal
• 2.55% will be allocated to the National Public Security Fund
• 0.82% to elementary school
• 1.63% to clubs, in return for name assignment
• 10% to social security
• 3% to the Ministry of Sports
Source: Estadão
