The Brazilian Institute of Accountable Gaming (IBJR) argues towards elevating taxes on sports activities betting, stating that it could create an “unsustainable” situation.
Talking at a public listening to on the Senate Joint Committee, the manager president of the IBJR, Fernando Vieira, has spoken out towards a provisional measure that may improve taxes on sports activities betting. He and the IBJR mentioned that such a measure might “destroy a just lately regulated market and push hundreds of thousands of bettors into illegality”.
“There’s a notion that the betting sector pays Brazil’s payments alone. That is unrealistic,” he mentioned. “The mixed income of the 5 largest Brazilian corporations is nearly 50 occasions larger than your entire income of the licensed betting market. That is disproportionate and an entire breach of belief within the regulator, provided that the market was regulated solely eight months in the past.”
Vieira went on to refute the claims that betting corporations solely pay 12% in taxes, claiming that with all consumption taxes, corporations typically pay as a lot as 28% with the Provisional Measure and greater than 40% with the tax reform.
“This situation is unsustainable,” he added. “Quite the opposite: it undermines authorized operators and strengthens the underground market.”
As an alternative of taxes, deal with unlawful markets
As an alternative, Vieira mentioned that the administration ought to deal with tackling unlawful playing, fairly than specializing in these corporations already adhering to rules and paying taxes legally. Because it stands, the underground market already represents as much as 51% of playing in Brazil.
“Essentially the most environment friendly method to improve income is to fight unlawful playing, to not stifle those that are regulated and paying taxes,” argued Vieira. “Individuals gained’t cease playing, however within the underground sector, there are not any guidelines, no audits, no safety. Externalities improve, and the patron is the one who loses.
“Our enchantment is obvious: the answer lies in combating illegality, consolidating the regulated market, amassing income effectively, and defending gamblers.”
Featured picture: IBJR
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