JUE 25 DE JULIO DE 2024 - 09:49hs.
Change aligned with the Treasury

Senate should vote today on sports betting bill with reduction to 12% in rate on GGR

After weeks of negotiations with the Ministry of Finance and various sectors, the rapporteur at the Economic Affairs Committee of the bill that regulates sports betting in Brazil, senator Angelo Coronel, will present this Tuesday (21) an opinion that modifies several points and reduces taxation in relation to the text approved in the Chamber to 12% on the GGR. After voting in the CAE, it will go directly to the Senate Plenary.

The text approved by the Chamber set taxation at 18%. Coronel even considered different rates: 12% for sports betting companies and 18% for online gambling. To news outlet Valor, Coronel argued that a higher tax rate could make Brazilian companies unviable.

“Around 90% of those who pay for media in Brazilian football are Brazilian betting operators. Foreigners do not pay a single dollar for advertising. It is not possible to scare away Brazilians who are here generating jobs, spending on media,” stated Coronel.

Among the main changes, in addition to the reduction in the tax rate on companies, Angelo Coronel will propose in his report that the bettor is taxed at 15% on the capital gain.

The rapporteur's doubt is whether the taxation will be on the player's monthly profit, as occurs in "day trading" on the Stock Exchange, or whether the tax will be charged annually, with the bets generating an income report so that the amount to be charged can be calculated, as happens in income tax.

Coronel justifies the reduction in bettor taxation with the argument that it is necessary to protect bettors in Brazil and prevent them from choosing to play on the parallel market. “We have to think about putting money into the Union. Operators are the ones who have to pay. The player is raw material. Without it there is no bet,” argued the rapporteur.

Another change that will appear in the report is the increase in the grant period from three to five years, with a limit of three websites per company. The amount will follow the same amount approved by the Chamber, R$30 million (US$ 6.15m). The text will also provide that companies operating in Brazil will have 2/3 of Brazilian employees.

Source: Valor