The Federal Government and the Federal Senate are considering the implementation of a 15% tax on sports betting and online gaming.

According to information from Senate sources, this new tax is expected to take effect in 2023.

In an interview with Estadão, Senator Irajá (PSD-TO) discussed the projections for the taxation of online gambling and sports betting.

“We are evaluating the possibility of applying a new contribution – it is something similar to what happens in discussions about gambling, where a 15% rate was established.” – said the parliamentarian.

There is the possibility that sports bettors will be taxed up to 30%, while the 15% value would be on the profit of bookmakers.

These proposals are still under discussion in the Federal Senate, which seeks to increase revenue projections in the coming years.

Exemption from winnings on sports betting and online games

Internal information from the Federal Government indicates that the Provisional Measure to be implemented for the sports betting and online games sector may establish a rate of up to 30% on the value of prizes.

However, there is an exemption range in which bettors can avoid paying Income Tax on their winnings.

According to the current rule, whoever earns up to R$ 1,903.98 will be exempt from paying income tax on their earnings.

Currently, gamblers who win money on gambling sites or online casinos do not pay taxes on their winnings.

This has led to the increased popularity of the betting and gaming market on the internet.

Companies will not be taxed on prizes paid to bettors

One of the characteristics of the Federal Government’s new proposal for bookmakers and online casinos is that the value of 15% will be levied on Gross Revenue from Gambling, that is, the gross revenue obtained from games.

In other words, when a bookmaker pays a premium, this amount is not considered as income for 

the company and is therefore not included in the calculation of the 15% that it must pay in fees to the Government.

Everything is still in its early stages, and the Brazilian government is exploring the best approach for this market.

The ability to use examples from other countries that have already regulated and legalized gambling and online casinos is an advantage that Brazil has.

While bettors wait for the new rules, it is possible to bet on sports or play casino games on renowned sites.

Given the sheer volume of information available on the internet, there are many useful resources for anyone looking to access a reliable bookmaker.

https://igamingbrazil.com/en/legislation-en/2023/07/17/sports-betting-and-online-games-can-be-taxed-at-15-by-the-government-and-senate/