ANJL criticizes Haddad's speech and warns that increased taxes on betting could favor illegal gambling.

247 - The National Association of Games and Lotteries (ANJL) reacted to statements made by Finance Minister Fernando Haddad regarding the taxation of the sports betting sector. In a hearing at the Senate's Economic Affairs Committee (CAE) on Tuesday (14), Haddad stated that taxing "bets" would be a way to "reduce privileges," classified criticism of the increase as the result of "misinformation," and mentioned a "tug-of-war" between the sector and the government.

In a statement released this Wednesday (15), ANJL stressed that the dialogue between the sector and the government “has always been conducted with institutional respect and a common commitment to strengthening the regulated market”. The entity considers, however, that raising the tax burden on operators is “a technically flawed and absolutely inopportune measure”, recalling that the government itself withdrew a similar proposal after extensive discussion in Congress.

According to the association, increasing the tax rates on companies' revenue would encourage the growth of illegal gambling, compromise tax collection, and jeopardize the sustainability of licensed operators, who joined the legal market "precisely at the moment when the regulated market is beginning to consolidate under the new regulatory framework."

ANJL also refuted the perception that the sector pays only 12% in taxes. "In reality, the 12% only represents the payment of allocations calculated on the difference between bets placed and prizes paid," they explained. In addition, operators bear other charges, such as 25% Corporate Income Tax (IRPJ), 9% Social Contribution on Net Profit (CSLL), between 3,65% and 9,25% PIS and Cofins, as well as inspection fees, social security taxes, and the ISS (municipal service tax), which varies from 2% to 5%.

The entity recalled that the discussion on the taxation of the sector was extensively debated in the National Congress in 2023, when the current model was defined as a way to strengthen the legal market and eliminate illegal gambling. “Based on this rate, we have more than 80 operators in the legal market, who estimated the respective tax cost to pay R$ 30 million for a five-year concession. Revising these assumptions before this deadline would likely lead to litigation on the issue, in addition to contradicting international experiences, where tax increases usually result in reduced revenue and fewer legitimate operators,” it stated.

ANJL argues that any proposed tax change should be preceded by technical studies, calculations, and impact analyses. "Proposals to burden a legitimate economic activity affect the credibility of the regulated environment and create legal uncertainty regarding commitments made," the organization warned.

The association reiterated that it remains open to "transparent, responsible, and evidence-based" dialogue, in pursuit of a sustainable sector "for society, the government, and the operators."

During the Senate hearing, Haddad defended the Provisional Measure that provided alternatives to the increase in the Tax on Financial Operations (IOF), stating that the proposal was "fair and balanced." The minister also said that he would seek new alternatives with President Luiz Inácio Lula da Silva after the MP was rejected by the Chamber of Deputies.

“We will look for alternatives. Taxing the BBBs — billionaires, banks, and betting companies — is only unfair in the minds of people who are uninformed about what is happening in Brazil,” Haddad declared.