Brazil’s Chamber of Deputies approved regulatory changes to shift the country’s gaming tax system from turnover-based to a revenue-based system.
The country appears to be on track to adopt the taxation model popular in Europe. They hope that It will “provide stable flows of public revenue and premiums and encourage bettors to use the services of local operators.”
The previously agreed-upon 3% turnover tax came into law in 2018. It sparked widespread opposition and now will not take effect.
The tax base is calculated after both winnings and taxes on those winnings have been paid out and after social security, payments have been made. 0.82%of tax revenue will go to schools that have met national exam performance targets. 2.55% will go to the National Public Security Fund (FNSP), 1.63% to sports clubs, and 95% to lottery operators.
Moreover, Brazilian President Jair Bolsonaro formally added sports betting to the country’s agenda in August. It signed a decree to include sports betting in Brazil’s Investment Partnership Program (PPI) portfolio and national privatization program.