SBC News Voice of the Sports Betting Industry
Trade bodies representing the interest of Brazil’s regulated online gambling market have unified in calling for a revision of tax policy and burdens attached to the sector.
The trade bodies have issued a united appeal to halt further tax increases on Brazil’s newly regulated betting sector. The six trade associations are:
- Brazilian Association of Games and Lotteries (ABRAJOGO),
- Betting and Fantasy Sports Association (ABFS),
- International Gaming Association (AIGAMING),
- National Association of Games and Lotteries (ANJL),
- Brazilian Institute of Responsible Gaming (IBJR),
- Brazilian Institute of Legal Gambling (IJL).
A joint statement released on 3 June describes the proposed tax changes as “unjustifiable from any technical, economic or public policy perspective,” warning that new levies could jeopardise the entire legal framework established by Law No. 14,790/2023.
The protest follows speculation that the federal government may look to compensate for the potential repeal of Decree No. 12,466, which raised the IOF tax on international remittances from 0.38% to 3.5%, by increasing taxes on licensed betting operators.
The bodies note that beyond the current burden — which includes 12% gaming tax, 9.25% PIS/COFINS, up to 5% ISS, and 34% in profit tax — a looming Selective Tax (or Sin Taxes) could push effective rates close to 50%.
“Compensating for temporary tax losses by disproportionately increasing the burden on a sector that is still undergoing regulatory consolidation compromises the very objective of public policy: channeling consumers to a safe, legal, monitored and socially responsible environment,” the associations warned.
They further highlight that Brazil risks repeating mistakes seen in Europe: “International experiences, such as those in Italy and Spain, have already shown that excessive taxation in newly regulated markets leads to the expansion of the illegal market.”
The economic implications are already visible. While the regulated market moved R$3.1bn (€418.4m) per month in Q1 2025, estimates place the illegal market at R$6.5bn to R$7bn — funds operating entirely outside state control.
The associations caution that raising taxes now could prompt operators to relinquish licences, exposing the market to an influx of unregulated, offshore platforms. “This disruption may result in litigation and systemic impacts, driving away investments and generating instability,” the coalition asserted.
Despite these concerns, the statement affirms the industry’s openness to dialogue: “We reaffirm our willingness to engage in institutional dialogue, but vehemently reject any attempt to turn the regulated betting sector into a scapegoat for the national fiscal imbalance.”
Lawmakers have been urged by industry stakeholders to focus on structural fiscal reforms, the formalisation of the digital economy, and targeted regulation of currently unregulated sectors.
“Efficient taxation should not be confused with confiscation,” the release concludes.
As the debate continues, the Federal Senate is awaiting the final recommendations of its Commission of Inquiry (CPI of Bets). The Commission’s conclusions are expected to heavily influence the next phase of policy decisions for Brazil’s online gambling regime.
