The Brazilian Association of Sports Betting (ABAESP) inviting the entire industry to sign a petition that has just been launched to reverse the decision to levy income tax on any gains in sports betting.
After congratulating the Legislative Power for regulating the activity of sports betting and online gaming, ABAESP highlights the importance of the measure in channeling the sector towards legal platforms and curbing illegal gambling.
ABAESP states that "it is a fact that high taxes lead consumers to replace legal operators, those duly licensed, with those operating outside the law. There is a direct relationship, worldwide, between excessive taxation and the migration of bettors to the illegal market."
"The taxation of players' winnings is not common practice in the major markets of the world, and even among the few countries with withholding tax on players' winnings, taxation considers exemption thresholds and income ranges," ABAESP emphasizes in the document.
It points out that "with the increase in the effective rate of the bettor, part of the market may resort to informality, negatively affecting revenue collection, and of course significantly undermining the protection and legal security of consumers of this type of bet."
Upon promulgating Law 14.790, President Lula presented six vetoes, three of which were related to the taxation of bettors. In the law submitted to the Executive, annual income tax collection was foreseen on net earnings exceeding R$ 2,100 (US$ 400). As a result, any and all bets will be taxed regardless of the amount won.
Addressed to the National Congress, which is set to vote on the analysis of President Lula's vetoes on the 24th, the ABAESP petition requests:
"In favor of the success of the regulated market, the undersigned citizens aim for the National Congress to rectify the Executive's mistake by overturning the vetoes to paragraphs 1, 2, and 3 of article 31 of Law 14.790/2023, restoring the legislation as approved by the Senate and the Chamber of Deputies."
The ABAESP petition can be signed here.
Source: GMB
