The issue is due to be considered by the National Congress when it returns from parliamentary recess to vote on President Luiz Inácio Lula da Silva's vetoes of Law 14.790, approved at the end of last year, which regulated the activities of bets in Brazil.

The sector argued that if the vetoes on the sections that provided for the annual collection of the tax are upheld, another possible consequence for the country would be the frustration of tax collection from the sector, since there is no tax collection on games played on the illegal market.

ANJL advocates that the 15% income tax rate on winners' prizes be collected through the taxpayer's annual tax return.
"In this way, annual taxation would bring a double benefit to the country, preventing punters from fleeing to illegal betting sites and possible legal challenges over withholding tax, which could jeopardize the Federal Government's own revenue target with the sector," said the association's president, Wesley Cardia.

Last week, the Ministry of Finance created the Secretariat for Prizes and Betting, which will take care of regulating and supervising fixed-odds sports betting, known as betting, and online gaming. 

According to the ministry, the secretariat will also be responsible for authorizing the distribution of prizes, gifts, lottery operations, anti-money laundering actions, market monitoring and the prevention of compulsive gambling.

The measure taxes companies and bettors and defines rules for the operation of the service, as well as determining the sharing of revenue. The law covers virtual betting, physical betting, real sporting events, online gambling and virtual events.