Brazilian Gamblers to Be Exposed to New Tax on Winnings

The Federal Revenue Service in Brazil has announced that prizes from fixed-odds lottery bets will be subject to a Personal Income Tax (IRPF) rate of 15%.

Brazil introduces new 15% player winnings tax.

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It is one of several new regulations being published in the country ahead of the launch of its regulated gambling market. The regulation will see net prizes, defined as the difference between the amount won and the amount bet, calculated for each bet or session and subject to a 15% levy.

Only winnings of at least BRL 2824 will be subject to the tax and it will be the operator’s responsibility to calculate and collect the tax. Other recent regulatory updates have dealt with technological requirements for operators to ensure the safety of customer data.

ANJL Calls for Lower Tax Rate

The tax is designed to be implemented with minimal friction; however, the country’s National Association of Games and Lotteries (ANJL) has called upon the government to reduce the tax rate in order to ensure the sustainability of the gambling industry in Brazil.

The organization has highlighted some hypothetical scenarios in which players who have lost more bets than they won and made no real profit could be taxed, which it claims could lead to long-term problems.

Poor assessment of the effective tax burden on net income tends to drive players away from the formal market, jeopardizing potential revenue and the extra-fiscal objectives of the legislation.

ReportAssociation of Games and Lotteries

More Regulation News

Small Chance of Tax Reduction

In the past, Brazil’s government has shown itself prepared to act on feedback from stakeholders, so it is possible that it will review the tax and change the regulations.

Related: Brazil Bans Credit Cards and Crypto under New Payment Rules

The launch of the country’s gambling market is being overseen by the Secretariat of Betting and Prizes, and one of its primary aims is to find a balance between generating tax revenue and creating a sustainable industry.


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