Brazil’s Permanent Sub -Committee on Sports Regulation confirmed that a focus should be on more focus on huge revenue losses on the illegal black market.
In recent days, a general hearing in Congress detailed that the underground gambling sector is believed to generate about 35 billion dollars ($ 6.4 billion) annually. It is believed that this equals about half of the online gambling activities in Brazil.
There was a consensus in the hearing that the main challenge facing the South American state was not the organization of the regulatory gambling, but rather the spread of illegal platforms, and the absence of any controls or protection of a player.
As with all underground gambling networks, the government in Brazil does not receive any tax revenue from these operations.
The participants included the session The Brazilian Institute for the responsible gambling (IBJR)Along with legislators, industry representatives and other authority bodies.
Fernando Vieira, CEO of IBJR, pointed out that the illegal market revenues in the legal market are a number of $ 38 billion, causing the government to lose about 10.8 billion dollars (2 billion dollars) as tax revenues annually due to invisible operations.
The discussion has focused heavily on the fact that illegal platforms operate without any supervision or controls of age or the protection of the user, which only increases the risk of gambling below the legal age, fraud, and other illegal activity.
Last month, IBJR provided new data showing that The central western region uses illegal betting platforms More than anywhere else.
An invitation to strangle the financial operations of the illegal gambling operators in Brazil
Since last year, it is estimated that the authorities in Brazil have banned about 17,000 unauthorized sites, with an average of more than 1700 month.
However, the Brazilian Congress session was said that efforts should be increased to combat the illegal market, especially with the money collected from the regulatory sector.
Representative Caio Vianna, Chairman of the Sub -Committee, who started the session, called for the “financial suffocation” of illegal operators by targeting their payment methods, because stopping websites alone is not sufficient because of their ability to move quickly under another jurisdiction.
There was also a great opposition expressed towards the proposed measure, currently being reviewed at the Brazilian conference, to increase the tax on total games revenue from 12 % to 18 %, which IBJR warns the legal market and create additional momentum for the growth of illegal platforms.
“This is a turning point. If Brazil turns only 5 percentage points from illegal to the organized market, additional revenues may reach one billion dollars per year,” added the head of IBJR Viera, “This is a turning point.
“The solution is not to increase taxes in haste, but to invest in supervision, monitor financial transactions, ratify suppliers, and raise consumer awareness. Only then we will reduce the size of illegal and unify a strong and sustainable organization.”
Credit image: Ibjr
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