Sports Betting MP Allowed; Find Out What Changes Market Regulation Could Bring

Sports Betting MP Allowed; See What Market Regulat...

The interim measures (MP) to regulate the sports betting industry approved by the federal government last week should have an immediate impact on the operations of bookmakers. The rules are already in force but must be analyzed by the National Assembly within 120 days.

Under the proposal, companies would be taxed at a rate of 18%, plus other taxes such as IRPJ, CSLL, PIS, Cofins and ISS, equivalent to 30% on bonuses worth more than R2,112 Income tax, which is levied at the same rate as the country’s existing lottery winnings, makes Brazil the highest tax rate in the world.

The tax measure has sparked debate among experts about the impact on the industry and government revenue. For Leonardo Baptista, CEO and co-founder of Pay4Fun, a Bacen-licensed payments institution operating in the online entertainment and sports betting space, the tax proposal could have a negative impact , because it would prevent other companies from entering the legal market, and thus, electricity generation could result in a real reduction in government tax revenue.

“The new Ministry of Environmental Protection addresses the industry’s growing regulatory needs and creates a regulatory framework that ensures greater transparency in the gaming industry and greater security of transactions. However, the introduction of higher The tax burden could jeopardize the profitability and competitiveness of companies in the sector and lead players in parallel markets to look for alternatives, which could further affect government revenue and oversight of these activities,” the executive warned.

Here are some of the key changes that lawmakers will bring to the sports betting market, with a focus on fixed-odds lotteries in Brazil:

Bacen is the body regulated by Nur to get the industry Licensed Institutions

Only institutions licensed by the Central Bank of Brazil (Bacen) can provide bettors with accounts for paying fixed odds bets and any winnings. This allows customers to feel more secure when conducting financial transactions, knowing that they are dealing with a regulated institution that is subject to strict controls and compliance requirements to prevent illegal activities.

“From the very beginning, Pay4Fun tried to position itself as a Bacen regulated payment institution, a strategic decision that reassures us that we are on the right path. Our priority has always been to serve our users and new Councilors provide a safe and transparent environment. The managing director said: “This only reinforces our commitment to ensure our clients’ interests are protected in all our operations. “

Mandatory Transparency in Gambling

Regulation also brings integrity and transparency to sport itself and prevents Manipulation.” The rule would force bookmakers to abide by ethical standards and transparently disclose relevant information, from the odds on each bet to the criteria used to determine winnings and payouts. This reduces the scope for breaches and increases user confidence in the system. ” points out Camila Caresi, Director of Governance, Risk and Compliance at Pay4Fun.

The tax rate is as high as 30%

Another aspect of the industry One change is the tax rate on the turnover of companies operating in the market. Player winnings above R2,112 are subject to a 30% tax. The measure also introduces an 18% tax rate on Gross Gaming Revenue (GGR), the sum of all gaming activity. Gross revenue minus winnings paid to players and taxes levied by corporations makes the country number one in the world for taxation in this sector.

Sports Betting MP Allowed; See What Market Regulat...

Comments (3)

  • Jody.reichert

    This text discusses the interim measures introduced by the federal government in Brazil to regulate the sports betting industry, including a proposed tax rate of 18% and additional taxes. Experts have expressed concerns about the potential negative impact on the industry and government revenue, as it may deter new companies from entering the legal market and lead to reduced profitability and competitiveness.

  • This text discusses the interim measures approved by the federal government to regulate the sports betting industry in Brazil. It highlights the potential negative impact of the proposed tax rates on companies in the sector, which could hinder market entry and decrease government tax revenue, according to Leonardo Baptista, CEO of Pay4Fun. The text also mentions the importance of Bacen regulation for licensed institutions and the introduction of transparency measures in the industry.

  • Linwood.abernathy

    This text discusses the interim measures approved by the federal government to regulate the sports betting industry, including new tax rates that could impact bookmakers and government revenue. The regulations aim to increase transparency and integrity in the industry, but some experts warn that the high tax burden may hinder profitability and competitiveness, potentially leading to players seeking alternative markets.

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