New bill suggests reallocating betting tax with 10% going to Brazil health sector
Law No 14,790/2023, which legalised sports betting and igaming in Brazil, set the tax rate for operators at 12% of gross gaming revenue (GGR), 28% of which would go to the tourism sector.
Of that 28%, 22.4% was expected go to the ministry of tourism while 5.6% would be allocated to the Brazilian Agency for International Tourism Promotion (Embratur).
In contrast, the health sector is currently set to receive just 1% of total tax contributions to deal with the “social damage” many politicians believe stems from betting.
The latest bill PL No 3,793/2024, presented in Brazil’s congress, would cut gambling tax contributions to the tourism sector to 19%, while increasing those to the ministry of health to 10%.
It would benefit Psychosocial Care Centres (CAPS), the Mental Health and Psychosocial Care Programme (PNSM) and Psychosocial Care Network (RAPS), as well as other initiatives that would boost the Brazilian population’s access to mental health treatment, says federal deputy Ismael Alexandrino who is leading the bill.
Health tax rise aims to ease gambling harm fears
Alexandrino claims the proposal is an “essential and urgent measure” to halt gambling addiction in Brazil.
A controversial study from the Brazilian Society of Retail and Consumption (SBVC) released in June claimed that of Brazilians who dedicate part of their salary to gambling each month, 11% had reduced their spending on healthcare and medication.
Within the bill, Alexandrino described Brazil as being in an “alarming” situation as various other politicians, including President Lula have flagged the impact betting is having on vulnerable people.
“The approval of this proposal is essential to protect the health of our population and ensure that the resources from sports betting are used to promote the well-being and quality of life of Brazilians,” the bill reads.
Tourism sector set to benefit from land-based legalisation
The bill would still see the tourism sector receive a sizeable contribution from gambling tax. Those coffers could be boosted further should the legalisation of land-based gambling get over the line.
PL 2,234/2022, which would legalise casinos, bingo, jogo do bicho and horseracing betting, remains to be voted on by the senate after receiving preliminary approval from the justice and citizenship committee in June.
Should that legalisation pass the line, however, the tourism industry in Brazil would be one of the sectors to most benefit from it.
Celso Sabino, Brazil’s tourism minister, believes it would provide a much-needed boost to the industry by assisting smaller tourist hubs and decentralising Brazil’s main tourist resorts.
Alex Pariente, corporate senior vice-president of casino and hotel operations at Hard Rock International, feels this legislation will be a crucial juncture to provide welcome help to Brazil’s tourism sector.
“Brazil is an absolute beautiful country and very diverse,” Pariente told iGB. “There’s absolutely everything there is to see in Brazil, but yet we don’t have a clear tourism policy that has been developed and has been sustained that can be consistent with attracting tourists into the country.”