Decision of the Senate Committee on Economic Affairs

Decision of the Senate Committee on Economic Affairs

The Brazilian Institute for Responsible Gaming (IBJR) acknowledges and welcomes the efforts demonstrated by the Senate’s Committee on Economic Affairs (CAE) in combating the illegal market. The organization also understands that the persistent push to increase the tax burden on platforms that operate legally in the country does not strengthen the newly regulated sector. On the contrary: it encourages the expansion of the illegal market, reduces the competitiveness of licensed companies, and ultimately places consumers at risk.

A study by LCA Financial Consulting indicates that between 41% and 51% of bets in Brazil still occur on unauthorized platforms, moving around R$ 40 billion per year and resulting in an estimated loss of R$ 10.8 billion in tax revenue. For every 5 percentage points of market formalization, the country could collect approximately R$ 1 billion in additional revenue.

Regulation of the sector represents progress precisely because it establishes clear rules for integrity, traceability, and debt prevention, aspects absent in the illegal market, which not only harms the State and consumers but also finances illicit activities and organized crime in various ways.

Combating illegal platforms must be a priority. Measures that weaken the regulated environment only benefit those operating outside the law and hinder efforts to confront the criminal networks that exploit the lack of oversight.

IBJR reinforces that the most effective way to increase revenue and protect Brazilian consumers is to strengthen the formal market, ensuring legal certainty, compliance with regulations, and a competitive and sustainable environment.