Ana Helena Pamplona pointed out that the IS, designed to inhibit the consumption of certain goods and services considered harmful to health, can have the opposite effect, encouraging compulsive gambling behavior among gamblers, the so-called ludopathy.
“The important thing is to think: what is the desired result and whether the Selective Tax will bring this result. International studies show that, when taxation is increased too much, the opposite of what is desired happens: people who do not gamble responsibly end up playing in the illegal market. And that is much worse,” stated Pamplona.
To the senators, the ANJL consultant explained that the Federal Constitution provides for a specific tax regime for the segment of prediction contests, which includes the sports betting and online gaming market. The efficiency of this regime will guarantee Brazil oversight, collection, consumer protection, combating illegal gambling, fostering the economy and generating jobs and income.
“My message is: the sector has the same enemy. Those who will benefit from the failure of regulation and the failure of the tax regime are precisely those we want to combat, which are all the illegal operators who do not want to pay R$30 million (in concession fees to the Union) and comply with an endless number of additional regulatory obligations,” said Pamplona.
35% tax burden
ANJL highlights that, without considering the possible application of the Selective Tax, the tax burden for the betting market in Brazil, with collection starting January 1, 2025, will already be one of the highest in the world. Considering the 12% rate of Gross Gaming Revenue (GGR, which consists of the difference between the total bet and the total paid in prizes) that all betting houses will have to pay, the tax burden of the sector will be around 35%.
For ANJL president Plínio Lemos Jorge, the implementation of yet another tax has the potential to drive away serious companies and even cause some that have already applied for a federal license to give up the process.
“As investors in any sector of the economy do, betting houses will carefully consider the cost and potential return they will have with their operations in Brazil. With just under three months to go until the regulated market effectively begins in the country, the discussion of yet another fee for the sector may make some players recalculate their course. This is what we are demonstrating to the senators,” he stated.
ANJL
Launched in March 2023, the National Association of Games and Lotteries defends the interests of its members, the sector and responsible and honest gaming, always guided by the promotion of sports, the security of bets and the contribution to the country's economic development.
Among its members are galera.bet/Playtech, Big Brazil, F12, PagBet, Betnacional, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, Z.ro Bank, Propane, Paag, Clear Sale, BetBox tv, StarsPay, 1xBet and PG Soft.
Source: GMB
