Brazil's Finance Minister, Dario Durigan, affirmed that the nation does not rely on betting revenues to maintain its public finances. He emphasized that the regulatory framework for the sector is well-established, aiming not to generate revenue, but to ensure fairness in taxation across all industries. "Tax collection is part of the economic game and all sectors contribute," Durigan stated, comparing the treatment of the betting industry to that of cigarettes.
In a recent interview with Guilherme Amado for Amado Mundo, Durigan explained that the Brazilian government, under President Luiz Inácio Lula da Silva, is adhering to legislative mandates concerning sports betting, which were not enforced during the previous administration. "The legislation mandated the regulation of the sector, which did not happen in the previous administration," he noted, pointing out that when they took office, the sector had been operational for almost five years.
He remarked on the significant influence that betting has had on sectors like football and advertising. With Congress disinclined to ban betting outright, the government opted to impose regulations instead. "It’s not that I want to collect taxes because I need the money. I want to collect taxes for the sake of fairness: if a company sells cars, it pays taxes; if it sells drinks, it pays taxes. If it's authorized to operate, it has to pay," Durigan asserted.
The Minister also touched on recent tax proposals from the Ministry of Finance and the ban on social welfare beneficiaries gambling. Durigan recalled President Lula's concerns regarding the potential costs and impact of betting on citizens' quality of life. "Therefore, we have been having this debate," he said, describing his discussions with Congress, the Supreme Federal Court, and the Attorney General's office about betting's effects on Brazilians.
Significant measures have already been introduced, including raising the direct tax for betting activity to 15% and incorporating it into the Selective Tax regime. Additionally, individuals benefiting from social welfare programs have been prohibited from participating in gambling, and a self-exclusion mechanism has also been implemented.
Durigan indicated that the conversation around banning betting would persist in the coming years, describing it as an "institutional debate" involving the Supreme Court, Congress, and the executive branch. However, he did not suggest that an outright prohibition was forthcoming.
