Brazil’s Sports Minister Ana Moser has brought forward a proposal that would see the gross gaming revenue (GGR) tax rate increase from 15% to 16%, local media reports.
The pending legislation also envisions the Ministry of Sports to take the function of the central tax collector that would allocate all additional funds gathered from Brazilian betting to various community-driven projects.
Further details include an additional 1.63% from taxes for football clubs, 10% for social security, 0.82% for youth initiatives, 2.55% for the National Public Security Fund, and 1% for the ministry itself. Congress is expected to provide an overview on 5 May.
However, football clubs in the country will likely advise Congress against this decision, as the proposal does not reflect their request for 5% of the betting income outlined in their joint letter addressed to the country’s Finance Minister, Fernando Haddad.
There is some progress already being made towards a nationwide betting regulatory framework, with the Ministry of Finance and the Ministry of State Planning co-approving the creation of a ‘Betting and Lottery Secretariat’, which would be responsible for overseeing sports betting licence applications and the bets made with them.
Congress is also expected to review counter-proposals brought forward by Evangelical representatives, who believe that sports betting will lead to unwanted societal consequences.
Minister Haddad has retained a positive sentiment that a new framework around sports betting will be formed after all, expecting the terms to be finalised in the coming weeks.
There is however a standoff between the government, football clubs, and the country’s football governing body CBF, with each having its own requirements in regards to sports betting.