The Brazilian Institute of Responsible Gaming (IBJR) conducted a study in which it warned about the negative consequences that the bill seeking to regulate sports betting in Brazil could have. The report was commissioned to the consulting agency Tendências Consultoria.
The figures of the study, which allow the IBJR to demand changes in the bill that has already been approved in the House of Representatives, were presented on Thursday, October 19, during the seminar “Regulation of sports betting in Brazil”, held at the IBMEC auditorium, in Brasília.
The current conditions of the bill will hinder the successful operation of betting companies in Brazil, the IBJR assures, which would lead bettors to the illegal market.
According to the study, the tax burden on bookmakers would total 29.69%. The report also points out that, due to other taxes levied on the sector, the fiscal cost would rise even more, reaching between 33.4% and 67.9% of the difference between the collection and the payment of bonuses.
There is also a warning about the impact this would have on the sports sector, where bookmakers play a fundamental role as sponsors. In the four divisions of the Brazilian Soccer Championship, 69% of the clubs have sponsorships from this sector.
“As this is a highly competitive market, it is reasonable to assume that margins are not high enough to allow operators to simply absorb these costs, without passing them on to consumers. In other words, a cost impact of this magnitude, without compensation through increased revenues, will make the operation of any online gambling company in Brazil unviable,” states an extract from the document.