The Brazilian Institute of Responsible Games opposes the increase in taxes on sports betting -

The Brazilian Institute of Responsible Games (IBJR) pleads against the increase in taxes on sports betting, declaring that this would create an “unsustainable” scenario.

Speaking during a public hearing at the Senate’s joint committee, the executive president of the IBJR, Fernando Vieira, has spoken out against a provisional measure which would increase taxes on sports betting. He and the IBJR said that such a measure could “destroy a recently regulated market and push millions of bettors in illegality”.

“There is a perception that the betting sector can pay Brazil’s bills. It is not realistic,” he said. “The combined income of the five largest Brazilian companies are almost 50 times higher than all revenues from the authorized betting market. This is disproportionate and a complete violation of confidence in the regulator, since the market was regulated only eight months ago. ”

Vieira then refuted the allegations according to which Paris companies pay only 12% in taxes, saying that with all consumption taxes, companies often pay up to 28% with provisional measurement and more than 40% with tax reform.

“This scenario is not durable,” he added. “On the contrary: it undermines legal operators and strengthens the underground market.”

Instead of taxes, focus on illegal markets

Instead, Vieira said that the administration should focus on the fight against the illegal game, rather than focusing on these companies already adhering to regulations and paying taxes legally. In the current state of things, the underground market already represents up to 51% of the game in Brazil.

“The most effective way to increase income is to combat illegal game, not to stifle those regulated and to pay taxes,” said Vieira. “People will not stop playing, but in the underground sector, there are no rules, no audits, no protection. The externalities increase and the consumer is the one who loses.

“Our call is clear: the solution lies in the fight against illegality, consolidation of the regulated market, collecting income effectively and the protection of players.”

Star image: IBJR

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