The Brazil Congress said to focus on loss of revenue of 6.4 billion dollars on the black market
The permanent subcommittee of Brazil on the regulation of sports betting underlined that a greater concentration must be placed on the loss of massive income against the illicit black market.
In recent days, a public audience at Congress has detailed that the underground games of chance would generate around 35 billion rands rands ($ 6.4 billion) per year. It is believed that this is equivalent to about half of all online play activities in Brazil.
There was a consensus at the hearing that the main challenge faced by the South American nation was not the industry of the regulated game, but the proliferation of illegal platforms and the lack of control or protection of players.
As with all underground game networks, the government of Brazil receives no tax revenue from these operations.
Audience participants included the Brazilian Responsible Game Institute (IBJR)With legislators, industry representatives and other authority organizations.
Fernando Vieira, CEO of IBJR, noted that illegal market revenues compete with the legal market of $ 38 billion, which causes government to lose around $ 10.8 billion (2 billion dollars) in tax income per year due to non -accelerated operations.
The discussion has emphasized the fact that illegal platforms work without any surveillance, age controls or user protection, which increases only the risks of minors’ play, fraud and other illicit activities.
Last month, the IBJR presented new data showing that the central region of the West uses the illegal Paris platforms more than anywhere else.
Call to stifle the financial operations of illegal game operators in Brazil
Since last year, authorities in Brazil have blocked around 17,000 unauthorized websites, with an average of more than 1,700 per month.
However, the hearing of the Brazil congress has been informed that efforts should be increased to combat the illegal market, in particular with funds collected in the regulated sector.
The deputy Caio Vianna, the president of the subcommittee, who launched the hearing, called for the “financial suffocation” of the illegal operators by targeting their payment methods, because the closure of websites alone is insufficient because of their ability to move quickly under another jurisdiction.
Significant opposition has also been expressed towards the proposed measure, currently being examined at the Brazil congress, to increase the gross game income tax by 12% to 18%, which, warned of IBJR, could weaken the legal market and create an additional dynamic for the growth of illegal platforms.
The head of the IBJR, Viera, added: “This is a turning point. If Brazil only changes 5 percentage points from illegal to the regulated market, additional income could reach 1 billion r $ per year.
“The solution is not to increase in a hurry, but rather to invest in surveillance, to monitor financial transactions, to certify suppliers and to raise awareness. It is only then that we will reduce the extent of illegality and consolidate a strong and sustainable regulated sector. ”
Image credit: IBJR
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