Brazil suggests a 16% Gross Gaming Revenue (GGR) tax on gambling operators
A 16% Gross Gaming Revenue (GGR) tax on gaming businesses has been recommended by the Ministry of Finance. The tax will be determined by subtracting the prizes given to players from the “revenue obtained from all games played.” tax gross Gaming revenue
The Brazilian Federal Government has alerted stakeholders and organizations to its impending proposal to implement a fixed-odds sports betting system.
The proposal also suggests taxing player winnings at 30% with a BRL 2112 (€390) exemption cap. Tax revenue will be allocated to areas like social projects, sports leagues, public safety, and elementary education.
The allocation of the 16% GGR tax has been predetermined, with money going to “various critical organizations” like public welfare, basic education, sports teams, and social projects.
The National Fund for Public Security will be strengthened specifically by 2.55%, bolstering initiatives to combat match-fixing, money laundering, and other crimes associated with gambling. A 0.82% share will go towards improving education in Brazil, and 1.63% will go towards sports teams.
10% of the GGR tax will be set aside for social security and welfare programs, which is a sizeable chunk. In the meantime, 1% of the designated taxes are supposed to go to the Ministry of Sports.
Companies in the industry will be required to run awareness and prevention programs in order to preserve a positive betting environment and avoid the emergence of gambling problems. These initiatives try to reduce the danger of gambling addiction in order to protect the mental health of gamblers.
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Additionally, the National Council for Advertising Self-Regulation (CONAR) will work with the betting industry to set communication, advertising, and marketing regulations. This criterion aims to promote ethical and responsible marketing activities, which will help to create a safe and well-regulated betting environment.
Once approved, the recommendations will be forwarded to the Chief of Staff. By taking this action, the ministries will be able to adopt policies and procedures to prevent and deal with match-fixing.
The expectations of Brazil’s top football teams, who have wanted a guaranteed 4% of betting income for the use of athlete and image rights, may contradict the government’s initial proposal, though.
The Brazilian Federal Government has alerted interested parties and organizations to its impending proposal to implement a fixed-odds sports betting regime.
The proposed rules and procedures created by the Ministry of Finance are described in a provisional notice that has been posted on the government’s website. With these regulations, Brazilian sports betting will be regulated.
A number of ministries, including Planning, Management, Health, Tourism, and Sports, will be involved in the plan to provide the transparency and oversight required to uphold public confidence and protect consumers.
The Ministry of Finance’s creation of a new industry secretariat is one of the major directives. This organization will be in charge of approving the accreditations of betting companies and keeping an eye on the market’s wagering volumes and revenues.
Once in place, only authorized operators will be able to take bets on recognized sporting events. Unlicensed businesses will be completely prohibited from advertising, including on digital media.
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