The week begins with an important step towards ensuring a sustainable, safe and fair Brazilian betting market for operators, government and society. In December, Law 14,790/23 was approved. However, two presidential vetoes were overturned last week by Congress, something celebrated by the Brazilian Institute of Responsible Gaming (IBJR).
IBJR celebrates decision on sports betting
The vetoes dealt with an essential issue for the viability and channeling of the local market: the collection of Income Tax on prizes for bettors. With the removal of these vetoes, the law returns to its original text, an interesting twist in the legislative scenario.
Deputies followed the IBJR recommendations based on studies on best practices applied abroad, establishing the annual tax collection and the IR exemption on amounts below the first band of the progressive tax table (R$ 2,259.20).
Thus, the IBJR celebrates the solidification of fairer taxation for Brazilian bettors. This will keep them closer to the legal market and with a variety of entertainment products at their disposal. So, Brazil wins, the bookmakers win and the bettors win.
It all started with Congress approving the law that regulates and taxes online betting in December last year. This measure was essential for the Ministry of Finance, which needed the additional revenue to meet the fiscal target.
Therefore, if an online betting company wants to operate here in the country, it will have to pay R$30 million to obtain a license. However, only companies that follow current legislation, with headquarters and administration in the country, can explore this activity.
Following the rule, the Government will distribute the resources collected as follows:
- 36% to the Ministry of Sports;
- 28% for Tourism;
- 13.6% for Public security;
- 10% to the Ministry of Education;
- 10% for social security;
- 1% for health
- 0.5% for civil society entities
- 0.5% to the Fund for the Equipment and Operationalization of Core Activities of the Federal Police (Funapol);
- 0.4% for the Brazilian Industrial Development Agency.
