A controversial topic in the regulation of sports betting, there may be changes to the taxation of betting houses during the consideration of bill 3,626 in the Federal Senate.

The rapporteur of the project in the Economic Affairs Committee (CAE) , Angelo Coronel, revealed that he intends to propose a reduction in the rate from 18% to 12% of the Growth Gaming Revenue (GGR) of betting houses.

The senator intends to meet with Finance Minister Fernando Haddad next Wednesday (25) to finalize his opinion, as Estadão found out.

Angelo Coronel is also considering including mayors in the distribution of revenues obtained from the new taxation, something that still depends on political negotiations as it requires a redesign of the distribution of resources.

Change in tax rate

Angelo Coronel’s idea is to reduce the rate that will be charged on the net profit from bets to 12%. This way, the aim is to make the Brazilian market more attractive to companies, which will still have to pay a concession fee to establish themselves in the national market.

In this idea, online games would continue to be subject to the 18% tax rate. This type of betting was not included in the original text sent by Congress, having been added by deputies during the vote in the Chamber.

Another alternative, according to the rapporteur, would be to reduce the general rate, both for sports betting and electronic games, from 18% to something around 15%.

In an audio message sent to Aposta Legal Brasil , Senator Angelo Coronel reiterated the importance of making changes to this point in the legislation.

“The idea is to generate extra revenue for the Union, but we also cannot leave betting houses unable to set up shop in Brazil. We have to provide the conditions for bettors to pay less tax on their winnings,” he said.

Let’s review the rates so that the segment can work, not be a sham. – Senator Angelo Coronel

The taxation provided for in bill 3,626 is viewed with concern by some politicians and figures in the sports betting sector, who point out the risk of encouraging an illegal betting market.

Among the 93 amendments suggested by senators for the bill, there are attempts to change the rate, both upwards and downwards, in addition to changes in the distribution of resources.

Distribution in municipalities

The senator also has plans to allocate a portion of the tax collected from betting to municipalities.

The division of the money would be done using the criteria of the Municipal Participation Fund (FPM), which is currently funded by a percentage of Income Tax (IR) and Tax on Industrialized Products (IPI).

“We will analyze where there is more so that we can take it from those who have more. We have to treat sports differently, because it is a sports bet. We can take a small slice from tourism, a small slice from sports, a slice from other entities, as long as everyone is included,” he said in an interview with Estadão.

Voting in the CAE

The vote on PL 3,626 in the CAE, where Senator Angelo Coronel is the rapporteur, was scheduled for last Tuesday (17), but was postponed after the rapporteur did not present a report.

The senators present at the meeting requested a public hearing, which was held last Thursday (19). The topic has not yet been placed on the committee’s agenda, which meets again next Tuesday (31).