The Specific Regime for the Incidence of Income Tax on the Receipt of Prizes from the Lottery Modality of Fixed-odds Bets

Abstract

The article describes and analyzes the regime defined by art. 31 of Law No. 14,790/2023 for the taxation, by the Personal Income Tax, of fixed-odd betting prizes (online sports betting and online casinos), investigating the hypothesis that Brazilian legislation, in addition to taxing online betting prizes in a much more favorable way than that applied to the taxation of prizes from other lottery modalities, seems to consider fixed-odds bets as a form of risky investment, given that the tax regime defined for betting prizes online is similar to the regime that income tax legislation applies to gains from operations on the stock exchange, commodities and futures. The article argues that, by considering online betting prizes as similar to the financial returns of the variable income market, the tax legislator acts contrary to the regulatory purposes of Brazilian legislation on the billion-dollar and expanding online betting market and can increase the economic and social risks associated with it.