Online bets must be taxed at 15%

A new interim measure sent to the Attorney General of the National Treasury (PGFN) aims to tax online bookmakers, popular in the world of sports, at 15% of gross gaming revenue (GGR).

Total Revenue refers to the total revenue minus the value of the prize pool offered to bettors.

The estimate, with the approval of the deputy, is that the government collects between R$12 billion and R$15 billion annually, Minister Fernando Haddad said in an interview with GloboNews.

According to Poder360, the percentage stipulated follows the model used in the UK, which today has nearly 90% of certified businesses operating legally.

Now, the constitutionality of the preliminary text created by the Ministry of Finance will be analyzed by the PGFN, which will also contribute to the changes.

The final text is expected to be closed in two weeks and the rules will go into effect shortly after the text is published, with 90 days to vote in Congress, Estadão explained.

The task of the government’s economic team will continue to be the task of collecting the opinions of representative bodies and other ministries between the tenth and the sixteenth of this month. On this wave, football clubs from São Paulo and Rio de Janeiro will be heard.

For example, the Brazilian Football Confederation (CBF) demands 4% of net betting proceeds. However, the government document stipulates a fee of 1.63% for entities that allow their brands to be used by bookmakers.

On the other hand, the clubs are calling for decentralization in bets on the Brazilian Federation and flexibility in paying the license to continue operating companies in the country, stipulated today at 30 million Brazilian riyals with a validity of five years.