Sports betting in Brazil: taxes on operators could increase

The decision would have been made after negotiations between the Sports portfolio and the Treasury, although there has not yet been an official announcement.

Brazil.- Sources from the economic team assured that, after a series of negotiations with the Minister of Sport, Ana Moser, it was decided to reformulate the provisional measure.

According to the Brazilian press, the new version would increase the collection of betting operators by 1 percent, from the 15 percent initially proposed to 16 percent on the income obtained from the games and fewer prizes.

According to the statement, the additional sum derived from the reformulation of the provisional measure on the taxation of online sports betting will go to the Ministry of Sports to encourage grassroots sports.

The new 16 per cent rate would break down as follows:

  • 0.82 per cent to primary school
  • 1 per cent to the Ministry of Sports
  • 1.63 per cent to the clubs, in exchange for the transfer of the name
  • 2.55 per cent to the National Public Security Fund
  • 10 per cent to social security

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The creation of the Secretariat of Gambling and Lotteries

Likewise, it was reported that the Ministry of Finance held negotiations with the Minister of Management, Esther Dweck, with the aim of creating a new Secretary of Gambling and Lotteries that would be contemplated in the provisional measure. This new structure would be in charge of analyzing documents to decide on the accreditation of operators in the country, as well as monitoring the volume of bets and collection.

To offset the increase in expenses, the Ministry of Finance suggests using the income from the payment of subsidies, which will amount to R$30m (USD 5,973,450) per operator. It is estimated that between 70 and 100 companies will pay the subsidy.

The authorities of the Treasury portfolio anticipate that the text of the provisional measure will be sent to Congress next Friday, May 5

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