The sports betting and online gaming sector has been under heavy criticism from public discourse accusing it of paying too little tax and encouraging gambling addiction. Now, the Lula administration has gained a new ally in its battle against the ‘Bets’, with the appointment of Guilherme Boulos as Minister of the General Secretariat of the Presidency.
During his inauguration this Thursday (30), Boulos criticized the opposition’s lack of support for initiatives such as ending the 6x1 work schedule and increasing taxes on the super-rich and on the ‘Bets’.
“Let them know: for every attack there will be a response, for every lie, a rebuttal. Our role will also be to expose the hypocrisy of those who claim to be against the system and to defend the people,” Boulos said during his speech at the Palácio do Planalto in Brasília.
“If they’re against the system, then why don’t they support our proposal to tax billionaires and ‘Bets’, Haddad? If they defend the people, why don’t they join us in ending the 6x1 work schedule?”
The sector itself has been seeking dialogue with the government to show that it is already heavily taxed, since, in addition to the 12% tax on GGR established by law, companies also pay other regular taxes such as Corporate Income Tax (IRPJ), Social Contribution on Net Profit (CSLL), and PIS/COFINS.
The total tax burden exceeds 25%, a fact often ignored when calls for higher taxation are made.
If the government proceeds with its plan to raise the GGR tax from 12% to 24%, the ‘Bets’ would face an overall tax burden of nearly 40%.
This could lead to numerous operations being suspended and a likely migration of players to illegal websites, which still represent about half of Brazil’s iGaming market. These sites pay no taxes and can offer more attractive options to users, with no concern for compliance, Responsible Gaming, or player protection.
Source: GMB
