Fernando Haddad Finance Minister, believes it is time for the country’s first fully-fleshed tax to be applied to sports gambling. This will happen very soon. Although the measure is expected to be announced this month, no confirmation has been made about whether or not it will go into effect immediately.
Brace Yourself for Sports Betting Businesses
This measure has a strong political backing. A tax on sports gambling will result in more money going to state coffers. It is also economically sensible as Brazil must find the money to pay for the exemption for workers earning up to twice the minimum wage. This was promised by President LuizInacio Lula da Silva who overtook his rowdy predecessor Jairbolsonaro.
Haddad is determined bring about the necessary changes in Brazil to create a stable and prosperous economy. The minister explained his plans for implementing it in an interview with UOL. Haddad was clear in his description of what online gambling sites – the source for his anger – are doing now.
He said that many companies simply took money out of the country and didn’t give anything back. It is difficult to calculate the benefits the country will receive from this proposal. The ministry does have an idea of the cost to the country for tax exemption, which is estimated at $616 million in initial estimates.
To fill budget gaps, tax revenue is needed
Online betting can be taxed in Brazil to offset some, if not all of these problems and introduce the law that will make online bookmakers fair taxpayers in Brazil. Although it may be easy to shift the blame to operators, it is important to remember that it was President Bolsonaro who failed to advance the issue and decided to regulate sports gambling without any clear understanding of how taxation would occur.
Sportsbooks are also growing in Latin America and Brazil. To consolidate their presence in the country, many overseas companies have signed partnerships with local athletes and provided sponsorships to soccer clubs.
