Gambling

Brazilian Suppliers Could Be Eligible for a Cut of 40% in the Revenue

The Chamber of Deputies has cleared a bill and passed it onto the Senate. Supplier and Operators could soon be splitting the Gross Gaming Revenue. Additionally, it imposes taxes on Operators.

Once passed by the Senate, it will be sent to the President, who will review it for approval. The bill also looks to legalize slot machines, horse racing, Jogo de Bicho, bingo, and online casino gaming.

It’s 40:60 For Suppliers And Operators

Even though the bill looks to legalize various games, one factor that attracts most of the attention is Suppliers and Operators splitting the Gross Gaming Revenue in the ratio of 40:60.

The suppliers of bingo and casino will be entitled to claim a share of 40% of the Gross Gaming Revenue. The bill has been passed by the Chamber of Deputies. It is up to the Senate to give the clearance.

It has been titled Bill 442/1991. Operators will still be eligible to retain 60% of the Gross Gaming Revenue. This share will be subject to certain taxes.

Operators will have to pay 17% CIDE and 2-5% in Municipal Tax on Services (ISS). The bill earlier stated the exemption from Municipal Tax and other social contributions. This was later included as the federal legislature is prohibited by the Brazilian Constitution to grant exemption from state or municipal taxes.

There is not a single statement as of the moment about how much Operators are approximately losing or gaining because of the bill.

The Senate is now deliberating over the bill.

It was surprisingly welcomed by everyone. Senator Carlos Viana from the Brazilian Democratic Movement was among the very few to oppose the bill. Senator Carlos Viana opposed the bill by saying that it could encourage money laundering and gambling addiction.

He published a post on Facebook to express his opinion. Senator Carlos Viana also said in the post that it could encourage prostitution.

These statements are being claimed to be inspired after analyzing the global trend where large casinos are the epitome of money laundering, prostitution, and drug trafficking. Senator Carlos Viana also said in the Facebook post that the inspection of this sector was very difficult, with gaming and betting addiction already being a part of the International Code of Diseases.

Once approved, the bill will pass on to President Jair Bolsonaro. Expectations are quite high; however, President Jair Bolsonaro had once expressed his desire to veto the bill. This is something serious, as if he does veto the bill, then the work will have to be invested into finding an alternative to pass the bill.

Fortunately, one such way does exist. If President Jair Bolsonaro does veto the bill, then the Chamber of Deputies will have to override the bill along with the Senate. For this purpose, they will require two-thirds of members of each vote to override the call of President Jair Bolsonaro.

Edna Boykin

Edna Boykin started her career as a financial news writer. And, she was withal active in stock trading. From the commencement of her vocation, she is passionate about online poker games. As she likes to play poker and roulette, she knows the casino industry exhaustively. She recently joined Times of Casino as a news writer. She regularly contributes in-depth breaking stories and news updates of the casino industry.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button