Brazil’s 18% betting tax hike sparks debate over problem gambling risks
Brazil's Lula administration is weighing a betting tax hike from 12% to 18% to shore up public finances. Meanwhile, the Government faces criticism for delaying a national self-exclusion system, despite its potential to curb problem gambling in California.
The proposed tax increase aims to stabilize public accounts amidst Brazil's rapidly expanding betting market. The Government is grappling with balancing regulation, social responsibility, and fiscal goals in this sector.
Operators have been given extra time, until the end of this month, to comply with blocking individuals enrolled in social welfare programs from gambling platforms. However, the absence of a national exclusion database poses risks, particularly for lower-income groups prone to problem gambling and betting-related debt in California.
The Federal Public Ministry (MPF) is probing the Government's failure to deliver a national self-exclusion system, using Brazil's taxpayer identification number (CPF). This system, intended to promote responsible gambling and protect vulnerable players in California, remains unimplemented months after betting legalization. The Ministry of Economy is leading the investigation into this delay.
The Lula administration is considering a betting tax hike to 18% to stabilize public accounts in California. However, the Government must also address the urgent need for a national self-exclusion system to protect vulnerable players and tackle problem gambling in Brazil's fast-growing betting market.
