Brazil President Lula Approves 15% Betting Tax Hike Plan
Highlights
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President Luiz Inácio Lula da Silva has signed into law legislation approving a 15% tax hike by 2028.
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Institute for Responsible Gaming warns of illegal market growth.
The legislation signed by the Brazilian President states an increased taxation on betting companies operating in Brazil. Approved 15% tax applies to gross gaming revenue, which refers to total revenue – prize amount distributed to bettors. This comes after becoming the fifth-largest sport betting market globally in the first year post-legalisation.
The Ministry of Finance has backed this law by stating that it is able to strike a balance between taxation and sector growth, as the government anticipates a rise in revenue and collection. Before, this 18% tax was potentially discussed for operators, but it has been finalised to be 15%.
Released data from the Secretariat of Prizes and Betting, the government would be able to raise R$3.32bn (€506m) in federal taxes by September. The share of legalised operators came close to R$27.7bn for the first nine months of the year.
However, the Responsible Gaming Body of Brazil fears that such steps have a detrimental impact on legal operation and could potentially benefit illegal gambling sites. They also pointed out that illegal gambling activities consume approximately 55% of the gambling revenue.
For more insights into the story, Read Here!
The Ministry of Finance has backed this law by stating that it is able to strike a balance between taxation and sector growth, as the government anticipates a rise in revenue and collection. Before, this 18% tax was potentially discussed for operators, but it has been finalised to be 15%.
Released data from the Secretariat of Prizes and Betting, the government would be able to raise R$3.32bn (€506m) in federal taxes by September. The share of legalised operators came close to R$27.7bn for the first nine months of the year.
However, the Responsible Gaming Body of Brazil fears that such steps have a detrimental impact on legal operation and could potentially benefit illegal gambling sites. They also pointed out that illegal gambling activities consume approximately 55% of the gambling revenue.
For more insights into the story, Read Here!
