Brazil’s Mulled Tax Hike Doesn’t Sit Well with IBJR

Brazil’s Mulled Tax Hike Doesn’t Sit Well with IBJR

Summary

The Brazilian Institute of Responsible Gaming (IBJR) has warned that a proposed increase in the gross gaming revenue (GGR) tax from 12% to 24% would substantially raise the tax burden on licensed operators. With an existing BRL 30 million licence fee and other charges, the IBJR calculates the jump to 24% GGR would amount to an effective tax-burden increase of about 45.4% for legal operators. The institute argues this would push some operators out of the regulated market, reduce player incentives and bonuses, and ultimately strengthen the black market.

Current estimates indicate roughly 51% of online betting in Brazil still happens with unlicensed operators, with BRL 38 billion wagered annually outside the regulated market and about BRL 10.8 billion in lost public revenue each year. The IBJR urges lawmakers to focus on making the legal market more attractive rather than increasing taxes, warning that even a small drop in legal activity could funnel significant sums to the black market.

Key Points

• Brazil currently charges a BRL 30 million licence fee plus a 12% GGR tax and other levies for operators entering the regulated market.
• Lawmakers are considering doubling the main GGR tax from 12% to 24%, which the IBJR says equals an approximate 45.4% increase in tax burden.
• The IBJR warns higher taxation could drive operators away from the regulated market and reduce bonuses and incentives for players.
• Roughly 51% of online betting in Brazil is estimated to occur with unlicensed operators; BRL 38 billion is bet with the black market each year, costing public coffers around BRL 10.8 billion.
• The IBJR recommends making the legal market more appealing to channel players away from unlicensed operators, rather than imposing heavier taxes that could worsen channelisation.

Why should I read this?

Short version: if you have skin in Brazil’s iGaming scene — regulator, operator, investor or supplier — this is one to watch. The numbers are big and the stakes are tangible: a tax tweak could reshape who stays in the legal market and who heads to the black market. We read the detail so you don’t have to — spot the risks, plan pricing and retention strategies, and keep an eye on any policy moves that could hit margins or player behaviour.

Source

Source: https://www.gamblingnews.com/news/brazils-mulled-tax-hike-doesnt-sit-well-with-ibjr/