Brazil: taxes on online sports betting and gambling could reach 15%
The Lula administration intends to tax online sports betting and gambling at 15% of gross revenues.
The Attorney General’s Office of the National Treasury received a draft with this tax rate has been sent for analysis.
According to the portal Power360, the tax rate studied by the government will be levied on the amount of online betting minus the amount paid with the prizes.
The model adopted follows the taxation model in use in the United Kingdom.
The big soccer clubs in São Paulo and Rio de Janeiro, which complained about not participating in the Provisional Measure (MP) construction process, will be heard on April 11.
The Brazilian Football Confederation (CBF) will have an audience with the government on April 13.
Among CBF’s demands is a larger share of net betting revenues.
The draft of the MP proposes the continuity of the allocation of 1.63% for entities that assign brands to bookmakers.
The confederation pleads for 4%.
The clubs, in turn, have two main demands: a change in how the profit from betting is transferred, removing the concentration in the confederation, and more flexible payment of the license, allowing it to be paid in installments.
The government is studying the value of R$30 million (US$5.93 million) for licensing.
Market estimates indicate that only 13 companies have the resources to pay in cash.
In addition, the MP may legislate over more than online betting.
The draft, still according to the news portal, also proposes the resumption of the lottery mode extinct by the Temer government.
The return would bring R$5 billion (US$1 billion) in revenue for the government.
With information from Revista Oeste
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