The Economic Development Commission is expected to vote in the coming days on whether to summon the Finance Minister to clarify the grace period given to sports betting and online gaming companies, during which online sports betting companies can operate without paying taxes. The request was made by Federal Deputy Bia Kicis.
In her justification, the deputy stated that “in light of the manifestation within the Secretariat of Prizes and Betting, allowing companies to exploit lottery modalities, granting these companies a grace period to continue operating in Brazil without paying fees, taxes, and/or contributions to municipal, state, and federal coffers, it is necessary for the Economic Development Commission to approve a request to summon the minister to provide explanations on the matter.
“It is astonishing to learn that the online betting sector, which is estimated to generate R$ 150 billion per year, has been granted a period of free operation, to the detriment of the most vulnerable communities in Brazilian society, who benefit from a significant portion of the Union’s and States’ revenue from the exploitation of games and lotteries,” the deputy continued.
“At this moment, with a forecast of a shocking deficit in the federal government’s GDP accounts, it is unbelievable that the Ministry of Finance and the Union would promote a revenue waiver in favour of a group of businessmen, which must be better explained by the minister,” Bia Kicis argued as she requested the approval of the summons.