Robinson Barreirinhas explained that the tax should serve a deterrent function.
Brazil.- The Special Secretary of the Federal Revenue Secretariat of Brazil (Receita Federal), Robinson Sakiyama Barreirinhas, advocated for higher taxation on profits earned through betting, with the aim of discouraging this practice. According to Barreirinhas, the tax on betting should have a "deterrent" and not just a revenue-raising function, similar to what happens in other countries, where bettors are required to pay taxes on their winnings.
In his appearance before the Parliamentary Investigation Commission (CPI) on Betting, the official defended the application of an Income Tax on betting: "My position is that the bettor should pay the Income Tax, because the tax, in this case, does not have a revenue-raising function, it has a deterrent function, to not encourage gambling. This is the case worldwide. We are treating bettors better than a company with real profits in Brazil. It's crazy," said Barreirinhas.
The official explained that, until 2024, Brazil did not have clear regulations regarding fixed-odds betting, which led to a legal vacuum that allowed the proliferation of companies without fiscal control. According to Barreirinhas, the lack of regulation meant that tax authorities could not collect accurate information about the operations of betting companies. From January 2025, the government will be able to obtain more reliable data and tax legally established companies.
During the session, senators also questioned the secretary about the possibility of applying retroactive taxes to companies that operated between 2018 and 2023, a period when the sector was unregulated. Although Barreirinhas highlighted that the situation is complex and that the retroactive application of taxes might require legislative changes, he noted that the Receita Federal is working to recover approximately R$ 3.000m (USD 513m) lost annually due to tax evasion in the sector.
Furthermore, the need to increase taxation of the iGaming sector and to strengthen international cooperation to combat money laundering and illegal transactions related to betting, especially through fintechs and services like Pix, was discussed. The CPI rapporteur, Senator Soraya Thronicke, highlighted the "immorality" of the platforms that operated without paying taxes for so many years.
