Tax reform could increase tax burden on Bets to 42% by 2033

More than 217 thousand people requested self-exclusion from betting

A study commissioned by Brazilian Institute of Responsible Gaming (IBJR) to LCA Consultoria shows that the tax burden on the sports betting and online gaming sector in Brazil could rise from 32% in 2025 to around 42% in 2033, when the tax reform is fully in force.

According to data published by Power360the projection indicates that, with the consolidation of the new tax system, sectors such as regulated betting will face a jump of ten percentage points in eight years, placing taxes on operators among the highest in the country.

Research shows that 40 million Brazilians placed bets on bets last year

How tax reform will affect the sector

With the tax reform, some existing taxes, such as PIS and Cofins, will be abolished; In its place, the Contribution on Goods and Services (CBS) will be implemented. In addition, state and municipal taxes, such as ICMS and ISS, will be replaced by the new Goods and Services Tax (IBS).

The study also highlights that other contributions, such as the Social Contribution on Net Profit (CSLL), the Corporate Income Tax (IRPJ) and regulatory charges, will continue to make up the sector’s tax burden, which already exceeds the taxation of segments such as information technology and telecommunications.

André Gelfi, director, advisor and co-founder of IBJR, warned that “increasing taxes for those who follow the law is a direct incentive to the underground market, which already drains billions from the economy without offering any protection to citizens”. Experts involved in the study say that more competitive taxes could help combat illegal activity and strengthen regulated platforms.

Fonte: Gaming365 – Brasil

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