Brazilian Ministry of Tourism wants participation in tax profits from sports betting

The Brazilian Ministry of Tourism is the latest government agency to advocate for a portion of the revenue generated by the sports betting tax.

In a recent statement, Tourism Minister Celso Sabino said he would negotiate with the National Congress to ensure that his department receives a share of future revenue generated by the new tax on sports betting. Other government bodies requesting a portion of revenues for specific causes include Brazil's Ministry of Racial Equality, as advocated by legendary football player Romário, now a Liberal Party senator from Rio de Janeiro.

Several Ministries of Tourism oversee gaming in Latin American countries, with Peru being a notable example.

On July 25, 2023, the Brazilian Government published the long-awaited Provisional Measure (MP) 1.182/2023, which regulates the commercialization of fixed-odd sports betting in Brazil. Despite the undisputed need and importance of regulation, experts argue that taxation could result in an expansion of illegal gambling and act as a deterrent to investment.

Details of the Provisional Measure

Provisional Measure No. 1.182/2023 establishes that a monthly social contribution of 18% will be charged on the Gross Gaming Revenue (GGR) of all licensed operators. This is in addition to social security and municipal taxes of more than 10%. This brings the total rate to about 30% of GGR. Sector stakeholders have strongly expressed their concerns regarding what they consider to be a high tax burden.

As reported in the SiGMA news, Wesley Cardia, General Director of the Presidency of the National Association of Games and Lotteries (ANJL), believes that the measures will serve to generate legal security for operators and players. The regulations will address match fixing and illegal gambling, the prevention of minors in sports betting and will include measures to help gambling addiction.

The regulation alone serves to legitimize the gambling sector in Brazil and will allow the creation of jobs and tax collection.
We also want to remind you that you can always play over 6.000 free demo slots on the portal You don't need to top up your account, you can play for free, you just need an internet connection.


See also other features