The National Association of Games and Lotteries (ANJL) warned in a public hearing of the Senate on Monday (25) about the Selective Tax, the harmful consequences for the entire society if Brazil establishes an excessive and inefficient taxation for the online betting market. The tax expert Ana Helena Pamplona, consultant for ANJL, demonstrated examples of players migrating to illegal sites in countries with high tax burdens.
In her participation, the ANJL consultant emphasized that a potential increase in the tax burden, which is already one of the highest in the world, will lead bettors to illegal sites, stimulating the socioeconomic problems resulting from irresponsible gambling.
“What is the big problem? If excessive taxation is implemented, what we want to combat, which are health problems, making people who develop some type of disease not participate, they will end up being encouraged outside the legal market and out of the state's oversight. And then it will be much worse,” said Ana Helena Pamplona.
The tax expert showed examples from around the world of players migrating to illegal sites in countries with high tax burdens. She mentioned that while the United Kingdom taxes bets at around 15% and has a channeling to regulated sites of 90%, France imposes a tax burden of about 45% and only manages to channel half of the players to the legal market.
“We use these countries as a reference, but in terms of total tax burden. It is important to remember that the sector already has an additional 12%, stipulated in specific legislation,” said Pamplona, referring to the GGR (Gross Gaming Revenue), to be paid by betting houses and set by Law 14.790/2023. “Further burdening the sector could be detrimental. The success of the tax regime means the success in regulation,” she added.
During the public hearing, the expert also highlighted that the Selective Tax has an extrafiscal objective, not a revenue-raising one. The current version of the tax reform regulation project (PLP 68/2024) goes against this, establishing a scenario of tax inefficiency that will bring losses to the country.
“We need to change according to the best tax practices, so that the success of this regime is achieved and, with it, migration to the regular market, greater consumer protection, resources for the State, and thus, an increase in Brazil's GDP,” assessed the ANJL consultant.
Launched in March 2023, the National Association of Games and Lotteries advocates for the interests of its members, the sector, and responsible and honest gaming, always guided by the encouragement of sports, the safety of bets, and the contribution to the economic development of the country.
Among the members are galera.bet/Playtech, Big Brazil, F12, PagBet, Betnacional, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, Z.ro Bank, Propane, Paag, Clear Sale, BetBox tv, StarsPay, 1xBet, and PG Soft.
Source: GMB
