Brazilian Finance Minister Fernando Haddad has confirmed gambling tax in the country will increase from 12% to 18% of GGR.The Brazilian Institute of Responsible Gaming or IBJR has spoken up about the increase in tax and said that this would result in the black market growing from 50% to 60%. Six of the largest gambling trade associations have also released a joint statement pointing out that the gambling sector has already contributed significantly to the country and to impose higher tax will be a burden.
Do you think that casinos would continue to want to operate in Brazil with these taxes? I am assuming that as a result, casinos would offer higher prices on their services as well due to the taxes and would most likely drive away customers. Would this eradicate the gambling sector altogether?
I don't think so, I honestly do not think that the higher tax or increase in tax that casinos were previously paying to the government will cause them to leave the country, or constitute any disruption in the gambling market in Brazil, the only thing I know will happen is that the casinos will likely increase their service charge on customers as a way or means of making more money so they can be able to pay the new tax and continue to stay in profit, gamblers and users of the casinos will have no choice but to pay the new service charge as I don't think the increase will be significant enough to want to drive the customers away.
In my country, we have learnt to easily adapt to such changes and increases in the price of goods and services due to unstable economic growth and activities, if the citizens of Brazil and majorly the gamblers in the country have mastered this type of adaptation, then this should not be a problem to them..