Sports betting: understand taxation and new rules established

Sports betting: understand taxation and new rules established


In addition to bookmakers, bettors also pay taxes on their winnings.

According to a source from the Reuters news agency, data from the Central Bank show that, from January to June this year alone, the flow of resources in online betting reached US$8 billion (around R$38 billion). Everyone who follows football has noticed that, currently, these betting sites sponsor several teams from the four divisions of Brazilian football. Only in Série A, only Cuiabá started the championship without the sponsorship of a website in this billion-dollar market.

Aiming to increase revenue and regulate the sector, on July 25th, the federal government published the provisional measure (MP) that regulates the sports betting market. In addition to taxing sports betting houses, income tax will be charged on prizes and new rules have been established. Check out the details below.

Taxation of betting houses

With the new rules, bookmakers will be taxed at 18%. This percentage will affect the so-called GGR (Gross Gaming Revenue), which is the revenue obtained by companies from all games played, minus the prizes paid to players, who will also pay tax on their winnings from betting. The bookmakers will keep the remaining 82%, which will still be subject to the same taxes already applied to all legal entities (such as CSLL, PIS and Cofins).

Prize tax

In addition to bookmakers, bettors also pay taxes on their winnings. The amounts received by bettors are subject to Income Tax and all prizes that exceed the exemption range, currently R$2,112, will be taxed at 30%.

Prizes not withdrawn

Another important rule for bettors concerns prizes that are not withdrawn. Winners will have up to 90 days, counting from the announcement of the result of the event they bet on, to claim the prize. The money that is not withdrawn by bettors will be returned to Fies (Student Financing Fund) until July 24, 2028. After that, the resources will be transferred to the National Treasury.

Who won’t be able to bet?

New rules were also stipulated to define who can and cannot bet. This measure seeks to put an end to manipulation schemes. Check the list of all people who are prohibited from placing bets:

under 18 years old;

who work in betting houses;

with access to fixed-odds lottery systems;

who can influence the outcome of games (such as coaches, athletes and referees, for example);

registered in credit restriction registers (denied);

In the case of betting house employees, people with access to lottery systems and public inspection agents, the prohibition also extends to spouses, partners and relatives up to the second degree. For more details on all the rules, simply access the official publication of Provisional Measure No. 1182, of 2023.

Established infractions and fines

Bookmakers that do not comply with the rules imposed by the MP are subject to administrative proceedings and fines. Among the offenses subject to punishment are:

operate in the betting market without authorization from the Ministry of Finance;

carry out prohibited operations or those not provided for in the license granted;

advertise companies not authorized to operate in Brazil;

hinder the supervision of the competent body;

encourage practices that undermine the integrity of the sport, the results or the transparency of the rules.

Bookmakers that violate the law can be punished with warnings and even fines that can range from 0.1% to 20% of the amounts collected, with a limit of R$2 billion per infraction. In addition to these punishments, there is also the possibility of revocation of authorization to operate in Brazilian territory and partial or total suspension of activities for up to 180 days. Bettors are also subject to fines ranging between R$50,000 and R$2 billion per infraction.

What does the Minister of Sports say?

Sports Minister Ana Moser said that this is another fundamental initiative by the Brazilian government, which, by regulating sports betting, will curb the manipulation of results and will preserve sporting integrity, in its broadest sense, praising the values ​​of sport as a reference for the entire society.

Read more:

How mobile apps are transforming sports betting

What new features does the new sports betting MP bring to the sector?

The influence of weather conditions on sporting events and their bets

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