Brazil’s Ministry of Tourism Asserts Right to Sports-Betting Tax Profits
The Brazilian Ministry of Tourism is advocating for a share of the revenue generated from the sports betting tax. Tourism Minister Celso Sabino has stated his intention to negotiate with the National Congress to ensure that his department receives a portion of future revenues from this tax. Other government agencies, such as the Ministry for Racial Equality, are also requesting a share of the revenue for specific causes.
Various Ministries of Tourism in Latin American countries oversee gaming, with Peru being a notable example.
On July 25, 2023, the Brazilian Government published Provisional Measure (PM) 1,182/2023, which regulates the commercialization of fixed-odds sports betting in Brazil. While the regulation is necessary and important, experts argue that the taxation involved may lead to an increase in illegal gambling and deter investment.
According to Provisional Measure No. 1,182/2023, all licensed operators will be required to pay a monthly social contribution of 18% on Gross Gaming Revenue (GGR). This is in addition to other taxes, such as social security and municipal taxes, totaling around 30% of GGR. Industry stakeholders have expressed concerns about the high tax burden.
Wesley Cardia, Director General of the President of the National Association of Games and Lotteries (ANJL), believes that these measures will bring legal certainty to operators and players. The regulation aims to address issues like match-fixing and illegal gambling, prevent minors from participating in sports betting, and provide support for gambling addiction.
Overall, the regulation will legitimize the gambling sector in Brazil, create job opportunities, and contribute to tax collection.