Brazil’s Chamber of Deputies approved regulatory changes which will see the country switch from a turnover-based tax system for gaming to a revenue based one.
The country looks set to adopt the model of taxation widespread in Europe, which it hopes will “provide stable flows of public revenue and premiums and mak[e] bettors use the services of local operators”.
The previously agreed 3% tax on turnover was signed into law in 2018, but drew much opposition and now is set to be scrapped.
The tax base is taken after both winnings and taxes on these winnings are paid out, as well as after social security payments. Of the taxation income, 0.82% will go to schools that have achieved performance goals in national exams, 2.55% to the National Public Security Fund (FNSP), 1.63% to sports clubs and 95% for lottery operators.
Ahead of the launch of legal sports wagering across the country (a process which has since been delayed due to changes in proposed regulation to a concession model instead of licensing), the National Bank for Economic and Social Development (BNDES) has received 38 responses to its request for proposals from potential vendors.
Brazilian President Jair Bolsonaro formally added sports betting to the country’s agenda last August, signing a decree to add sports wagering to Brazil’s Investment Partnership Program (PPI) portfolio and national privatisation programme and appointing managers to lead the licensing process.
