Betting industry representatives should need to compress margins or pass on the increase in tax costs to gamblers after increasing the industry rate. They argue that the measure, which will be included in a provisional measure, has a ripple effect to increase the illegal market and lower collection.
Announced as an alternative to high in the tax on financial operations (IOF), the increase in taxes on the billing of bets It is one of the measures announced by Minister Fernando Haddad. In addition to charges such as ISS, PIS/COFIS, Income Tax, CSLL, these companies pay tax rates on the revenue of betting after the awards pay. Today, it is 12%; By the proposal, it would go to 18%.
Companies in the sector, and an elevation would unbalance a recently regulated sector that was structured based on the current rate.
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“The measure is unacceptable and makes the operation of many companies that have entrusted and invested in the regulated market unfeasible, generates legal uncertainty and threatens public collection,” says a note sent by the Brazilian Institute of Responsible Game (IBJR), representative of the main companies in the sector.
The tendency is for companies not to be able to absorb the increase in the aliquot on their margin, according to sources heard by the Infomoneyand pass the tax costs to the gambler. The effect, they argue, would be a strengthening of the informal market.
The president of the National Association of Games and Lotteries, Plínio Lemos Jorge, explains: “When there is an increase in tax burden, I need to pass the price to the product. bet It’s the bet. To pass on, I need to reduce the oddamount paid in the awards. ”The reduction of the paid prize to the gambler would increase the competitive advantage of illegal houses, which no longer bear tax commitments.
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Sector estimates indicate that about half of the betting market is currently illegally, even after regulation at the beginning of 2025. IBJR suggests that the number could reach 60% if taxation avenges.
“Revenge” because there is already talk of judicialization. Jorge says that “changing the conditions of regulation that had already been established allows the judicial contestation, since the economic and financial balance of contracts do not consider the way they were signed.”
IBJR said that “the sector continues to seek dialogue with the government, with the National Congress and, if necessary, will appeal to court.”
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Sector representatives argue that in addition to gamblers, the increase in the tax burden can bring authorized websites with more modest operations to the informal market and make it difficult to access entrants – which would go in the opposite direction to increased collection.
Today, there are about 80 companies awaiting authorization from the Secretariat of Awards and bets at the Ministry of Finance to enter the regulated market. Jorge argues that these operations can become unfeasible.
