Brazilian gambling trade association says a sports betting tax rise would increase the percentage of unregulated activity in the country by at least 10 per cent and cost BRL2bn (£266.7m) per year in revenue.
The Brazilian Institute of Responsible Gaming (IBJR) said that, should the proposed rise from 12 per cent to 18 per cent go through, illegal brands would account for at least 60 per cent of Brazil’s betting activity.
Brazil’s Minister of Finance, Fernando Haddad, held a press conference with fellow politicians on Sunday, June 8, to go through the proposal.
The rise in the betting tax has been put forward as an alternative to the rise in the Financial Transactions Tax (IOF), which was scrapped by ministers.
“The right path to increasing revenue is not to penalise those who operate legally, but rather to strictly combat illegality and protect bettors by following sector regulations,” the IBJR said in a statement on LinkedIn.
“The measure is unacceptable and would make it unfeasible for many companies that trusted and invested in the regulated market to operate. It creates legal uncertainty and threatens public revenue.”
The IBJR said it will continue to talk with the government and National Congress but will resort to legal action if required.
The IBJR and fellow trade associations last week came together to “vehemently reject” attempts to make the online betting and gaming sector a “scapegoat for the country’s fiscal imbalance.”
