Brazil Ministry of Tourism wants share of sports-betting tax profits

Content Team August 29, 2023

The Brazilian Ministry of Tourism is the latest government agency to advocate for a share of the revenue generated from sports-betting tax.

In a recent statement, Tourism Minister Celso Sabino, said that he would negotiate with the National Congress to ensure that his department receives a share of future revenues generated by the new sports betting tax. Other government bodies asking for a share of revenues for specific causes includes the Brazilian Ministry for Racial Equality, as advocated by legendary footballer Romário, now Liberal Party Senator for Rio de Janeiro.

Several Ministries of Tourism oversee gaming in Latin American nations, with Peru serving as a notable example.

On 25 July 2023, the Brazilian Government published the much-anticipated Provisional Measure (PM) 1,182/2023, regulating the commercialisation of fixed-odds sports betting in Brazil. In spite of the uncontested need for and importance of the regulation, experts argue that taxation may result in an expansion of illegal gambling and act as investment deterrent.

Details of the Provisional Measure

Provisional Measure No. 1,182/2023 states that a monthly social contribution of 18% will be levied on Gross Gaming Revenue (GGR) by all licensed operators. This is in addition to social security and municipal taxes at 10plus percent. This brings the total rate to around 30% of GGR. Stakeholders in the industry have been vociferous with their concerns regarding what they consider as a high tax burden.

As reported on SiGMA news, Wesley Cardia, Director General of the President of the National Association of Games and Lotteries (ANJL), believes that the measures will serve to generate legal certainty for operators and players. Regulation will tackle match fixing and illegal gambling, prevention of minors from sports betting and will include measures to help gambling addiction.

The regulation in itself, serves to legitimise the gambling sector in Brazil and will enable job creation and tax collection.

SiGMA’s regional summit in Limassol, Cyprus

SiGMA Balkans/CIS is less than two weeks away. It will be held at the City of Dreams, Europe’s first integrated resort from the 04 – 07 September.

Industry operators will be able to connect with leading affiliates and two conference stages will feature a number of high-profile guest speakers. There will also be an expo floor, including the SiGMA Startup Village. So much more is happening in Limassol! Check out all the details here.