In total, six sections of the law were vetoed by the Executive at the end of last year. Associations advocate for the removal of three of these, pertaining to Article 31. The vetoes exclude the annual taxation of the prize and its incidence only on net prizes whose total exceeds the value of the first exemption bracket of Income Tax.
According to a Technical Note prepared by ANJL, except for Greece, no European country specifically taxes bettors' prizes. In the assessment of the entities, maintaining the vetoes will encourage the migration of players to the illegal market.
If the vetoes are maintained, another impact in addition to the potential migration to irregular sites, will be a collection below the expected by the Union, since these platforms will not collect any tax as they will not deduct tax from the bettors' prize. Consequently, the expected volume of resources for areas such as health, education, and public security will also be reduced. Last but not least, the illegal market will bring about a lack of security and legal protection to betting consumers.
ANJL
Launched in March 2023, the National Association of Games and Lotteries (ANJL) defends the interests of its members, the sector, and responsible and fair play, always guided by the promotion of sports, the safety of bets, and the contribution to the country's economic development.
Among the members are GaleraBet/PlayTech, Big Brazil, F12, PagBet, BetNational, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, ZRO Bank, Okto, Propane, PAAG, and Clear Sale.
ABFS
Founded in 2022, the Brazilian Association of Fantasy Sports (ABFS) was established by companies in the Brazilian market active in the Fantasy Sports segment. ABFS brings together more than 34 million players of this electronic sport.
ABAESP
Established in 2019, ABAESP (Brazilian Association of Sports Betting) is a non-profit organization aimed at defending the rights and interests of its members, as well as betting consumers, companies, operators, and other entities seeking to see the Brazilian sports betting market positively regulated.
Source: GMB
