“We need to fight injustice in Brazil. It’s unacceptable that the very rich don’t pay taxes while the burden falls on the poorest. This level of concentration cannot continue,” she stated.
“Once again, you led us. You sent important bills to Congress, like exempting income tax for those earning up to R$ 5,000 (US$900). The PT is to be congratulated for this campaign. We need to tax banks and betting companies. And this semester we face challenges in Congress: voting on income tax and the ‘Bets’ amendment,” the minister added.
The increase in taxation on betting companies has been proposed through a Provisional Measure (MP), which would directly impact the operations of sports betting and online gaming companies in Brazil. Under this MP, operators would be required to pay 18% on Gross Gaming Revenue (GGR), a 50% increase over the rate previously set by legislation.
With the new tax burden, sports betting and online gaming companies would face an overall tax rate exceeding 55%, which industry associations argue is unsustainable. These organizations claim that some companies may abandon operations in Brazil, and others currently awaiting authorization from the Secretariat of Prizes and Betting (SPA) might withdraw their license applications.
According to these associations, the greatest risk is the increased presence of illegal platforms, which do not pay taxes and could offer more attractive odds to players.
Source: GMB
