Official Statement: The role of the regulated betting market in protecting society and driving Brazil’s development

The Brazilian Institute for Responsible Gaming (IBJR) shares the concerns of President Luiz Inácio Lula da Silva regarding the well-being of Brazilian families and reaffirms that regulation is the safest and most effective tool to protect society. Shutting down the legal market would not eliminate public demand but would instead push all activity into the informal sector, removing protection mechanisms and significantly reducing revenue allocated to essential public services.

The major challenge shared by both the industry and the government is the effective fight against illegal platforms. Currently, the illegal market accounts for approximately 51% of the betting sector, generating around R$40 billion annually outside the law and causing an estimated R$10.8 billion in yearly losses to public coffers, according to a study by Instituto Locomotiva in partnership with LCA Consultoria. Strengthening the formal market, which operates under one of the most modern regulatory frameworks in the world, is the path to curbing illegality and ensuring clear rules of integrity and player protection.

Regarding household debt, IBJR acknowledges the sensitivity of the issue and contributes to the debate with concrete data: a technical study by LCA Consultoria shows that spending in the sector represents between 0.2% and 0.5% of Brazilian household consumption. Data from the National Survey of Consumer Debt and Default (PEIC) indicate that the main source of over-indebtedness—affecting 80.2% of families—is credit card usage. To actively help prevent this issue, regulated platforms (identified by the .bet.br domain) are prohibited from accepting payments via credit cards or cryptocurrencies.

Public health and the protection of minors are also priorities for the licensed market. Companies in the sector require strict identity verification and facial recognition processes during registration. Additionally, the regulated environment is the only one that offers mandatory safety measures, such as time limits on gameplay, deposit restrictions, and self-exclusion tools. Regulation is therefore the main barrier to protecting the financial and mental well-being of Brazilians, ensuring a safer entertainment environment.

Regarding tax contributions, the sector is proud to be an important partner in Brazil’s development. In 2025 alone, the Federal Government collected R$9.95 billion in taxes from regulated platforms. In addition, billions are injected into society through allocations based on GGR (Gross Gaming Revenue), funding critical areas with projections of R$1.6 billion for sports, R$1.2 billion for tourism, R$590 million for public security, and R$433 million for education.

The legal framework established a robust structure, with a total tax burden expected to reach 32.8% of GGR by 2026 and projected to rise to 42% by 2033. Any further progressive tax increases may have the unintended effect of driving users toward illegal markets, as seen in international experiences.

Each operator has paid R$30 million in licensing fees to operate in the regulated market for five years, establishing companies headquartered and managed within Brazil under clear rules. This commitment has generated approximately R$2.5 billion in federal revenue. The sector has already proven to be a crucial economic driver in its first year of regulation: with R$7.5 billion in invested capital, it generates a multiplier effect capable of creating up to R$28 billion in additional economic demand, according to LCA Consultoria. Furthermore, the segment supports the labor market, sustaining approximately 15,500 direct and indirect jobs.

Rolling back regulation would mean cutting off vital revenues for social development and exposing Brazilians to the risks of the illegal market. The Brazilian Institute for Responsible Gaming reiterates its commitment to transparent and technical dialogue with the Executive Branch and the National Congress, acting strictly within democratic principles to consolidate a safe, responsible sector that actively contributes to the country’s future.