In her participation, the ANJL consultant emphasized that a potential increase in the tax burden, already one of the highest in the world, would drive bettors to illegal websites, exacerbating the socioeconomic issues stemming from irresponsible gambling.
"The main problem? If excessive taxation is imposed, what we aim to combat—health problems and ensuring that individuals who develop certain disorders do not participate—will end up being encouraged outside the legal market and beyond the State's oversight. And that will be much worse," said Ana Helena Pamplona.
The tax expert provided examples from around the world of player migration to illegal websites in countries with high tax burdens. She noted that while the United Kingdom taxes bets at around 15% and achieves a 90% channeling rate to regulated sites, France imposes a tax burden of approximately 45% and manages to channel only half of the players into the legal market.
"We use these countries as references, but in terms of the total tax burden. It’s important to remember that the sector already has an additional 12%, provided for in specific legislation," Pamplona said, referring to the GGR (Gross Gaming Revenue), which must be paid by betting operators as mandated by Law 14.790/2023.
"Further burdening the sector could be detrimental. The success of the tax regime signifies the success of regulation," she added.
During the public hearing, the expert also highlighted that the Selective Tax has an extra fiscal purpose, not a revenue-generating one. The current version of the regulatory project for tax reform (PLP 68/2024) goes against this principle, creating a scenario of tax inefficiency that will harm the country.
"We need to adapt according to the best tax practices to ensure the success of this regime, leading to migration to the regular market, greater consumer protection, resources for the State, and, consequently, an increase in Brazil's GDP," assessed the ANJL consultant.
Launched in March 2023, the National Association of Games and Lotteries (ANJL) advocates for the interests of its members, the sector, and responsible and ethical gaming, always guided by the promotion of sports, the security of bets, and contributions 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
