The National Association of Games and Lotteries (ANJL), the Brazilian Association of Fantasy Sports (ABFS), and the Brazilian Association of Sports Betting (ABAESP) have joined forces to lobby for the overturning of executive vetoes on sections of Law 14.790/2023 concerning the method of Income Tax application on winnings from sports betting and fantasy sports. The National Congress will vote on the vetoes on Wednesday (24).
In total, six sections of the law were vetoed by the Executive at the end of last year. The associations advocate for the removal of three of these, related to Article 31. The vetoes exclude the annual tax charge and its application only on net winnings exceeding the amount of the first Income Tax exemption bracket.
According to a Technical Note prepared by ANJL, with the exception of Greece, no European country specifically taxes the winnings of bettors. In the assessment of the entities, maintaining the vetoes will encourage players to migrate to the illegal market.
If the vetoes are upheld, another impact, besides the potential migration to irregular sites, will be a collection below what is expected by the Union, since these platforms will not collect any tax as they will not deduct tax from the prize of the bettors.
Consequently, the volume of resources expected for areas such as health, education, and public security will also be reduced. Lastly, but not least importantly, the illegal market will bring a lack of security and legal protection to the consumer of bets.
ANJL
Launched in March 2023, the National Association of Games and Lotteries (ANJL) defends the interests of its members, the sector, and responsible and fair gaming, always guided by the encouragement of sports, the security of betting, and the contribution to the economic development of the country.
Among the members are GaleraBet/PlayTech, Big Brasil, F12, PagBet, BetNacional, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, ZRO Bank, Okto, Propane, PAAG, and Clear Sale.
ABFS
Founded in 2022, the Brazilian Association of Fantasy Sports (ABFS) was established by companies in the Brazilian market active in the Fantasy Sport segment. The ABFS brings together more than 34 million players of this electronic sport.
ABAESP
Founded in 2019, the ABAESP (Brazilian Association of Sports Betting) is a non-profit organization that aims to defend the rights and interests of its members, as well as consumers of betting, companies, operators, and other entities seeking to see the Brazilian sports betting market positively regulated.
Source: GMB
