The Prizes and Betting Secretariat, linked to the Federal Government’s Ministry of Treasury, decided to tax bonuses offered by bookmakers. Consequently, companies in the sector, known as bets, expressed dissatisfaction with the measure.
The decision, announced at the end of January, includes the bonuses in the GGR (Net Betting Revenue) calculation base. In this way, they become taxed as part of the platforms’ revenue.
Currently, bets use bonuses as a commercial strategy. For example, they offer promotional credits for new users to test the services. Additionally, some platforms give bonuses on customers’ birthdays.
When the bettor uses credit and loses, the company has no financial gain. On the other hand, if the bettor wins, the bonus becomes a cost for the company, as the amount comes out of cash.
Industry executives, who preferred not to be identified, criticized the measure. They claim that the decision is an attempt by the government to increase revenue to meet fiscal targets. Furthermore, they highlight that there is no legal basis for taxation, which is not provided for in the sector’s regulation.
Government agency justifies taxation of betting bonuses
The Prizes and Bets Secretariat responded when contacted by Folha de S. Paulo. The municipality stated that it published the technical note to increase legal certainty and predictability. The secretariat also highlighted that it will evaluate the sector’s questions, always based on current legislation and regulations.
In the technical note, the secretariat justified the taxation. According to the agency, promotional credits are a direct financial incentive for betting, as they are intended exclusively for this type of operation.
The secretariat argues that, without taxation, there could be an incentive to gamble beyond what the regulation intends. “Especially when we take into account the importance of actions to promote responsible gaming”, says the note.
The measure generated debates about the impact on companies and bettors. Meanwhile, the sector awaits further developments on the implementation of taxation.
