Betting: PM comes out that provides for 18% taxation for companies – 07/25/2023 – Market

The government of President Luiz Inácio Lula da Silva (PT) published this Tuesday the MP (provisional measure) that regulates sports betting.

The forecast is that companies pay a rate of 18% on the revenue obtained from games (called GGR, or gross gaming revenue), discounting the prizes paid to players.

The rule states that a maximum of 82% will be allocated to betting platforms to “cover the cost and maintenance of the fixed-quota lottery operating agent”.

In addition, 3% will go to the Ministry of Sport and 1.63% to sports entities that have explored the brand.

The measure has the force of law immediately, but may lose its effectiveness if it is not approved by the National Congress within 120 days.

The norm gives the Ministry of Finance the power to further detail the rules of betting and fundraising. It also stipulates that the department should supervise the activity and “request technical, operational, economic-financial and accounting information from the regulated agents, data, documents, certificates, certificates and reports”.

The Minister of Finance, Fernando Haddad, has said that the revenue forecast is around R$ 2 billion, an amount that will be incorporated into the budget proposal, but the real potential tends to be greater.

“The Federal Revenue’s expectation on revenue is much lower than the estimate of the sector itself and the preliminary projections of the Secretariat for Economic Reforms. So, it [a medida] goes in the Budget, but with a low projection, around R$ 2 billion”, said Haddad last Thursday (20).

According to him, the conservative estimate is preferred to convey the message that “the Budget is being prepared on solid bases”.