The Brazilian Institute of Accountable Gaming (IBJR) argues towards elevating taxes on sports activities betting, stating that it might create an “unsustainable” state of affairs.
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 will improve taxes on sports activities betting. He and the IBJR mentioned that such a measure may “destroy a lately regulated market and push hundreds of thousands of bettors into illegality”.
“There’s a notion that the betting sector will pay Brazil’s payments alone. That is unrealistic,” he mentioned. “The mixed income of the 5 largest Brazilian firms is sort of 50 occasions larger than your complete income of the licensed betting market. That is disproportionate and a whole 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 firms solely pay 12% in taxes, claiming that with all consumption taxes, firms usually pay as a lot as 28% with the Provisional Measure and greater than 40% with the tax reform.
“This state of affairs is unsustainable,” he added. “Quite the opposite: it undermines authorized operators and strengthens the underground market.”
As an alternative of taxes, concentrate on unlawful markets
As an alternative, Vieira mentioned that the administration ought to concentrate on tackling unlawful playing, slightly than specializing in these firms already adhering to laws and paying taxes legally. Because it stands, the underground market already represents as much as 51% of playing in Brazil.
“Probably the most environment friendly technique 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 buyer is the one who loses.
“Our enchantment is evident: the answer lies in combating illegality, consolidating the regulated market, amassing income effectively, and defending gamblers.”
Featured picture: IBJR
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