Position on Provisional Measure (MP) 1,303

Position on Provisional Measure (MP) 1,303

The Brazilian Institute of Responsible Gaming (IBJR), which brings together the leading betting companies regulated by the Federal Government, believes that the report on MP 1,303 exposes not only the industry but also bettors to increasing risks of migration to illegal operators.

These platforms, by not complying with national regulations, offer no guarantees of transparency, protection against fraud, or effective age verification of users, leaving minors vulnerable—unlike the regulated market, which applies facial recognition and other mechanisms provided by law.

In this context, it is also essential to strengthen the accountability of digital platforms, social networks, and search engines in combating illegality, with the same rigor already applied to other unlawful content.

Licensed operators have each paid R$30 million for a five-year license, totaling more than R$5.6 billion already collected between January and August 2025, according to the Federal Revenue Service, in addition to structuring their businesses based on the rules defined in December 2024.

Abruptly changing taxation—raising the gross revenue contribution rate from 12% to 18% just eight months after the start of regulation—creates legal uncertainty, undermining the confidence of companies that have invested in the country. This instability threatens not only the continuity of operations but also the credibility of the business environment in Brazil.

For IBJR, increasing tax revenue and ensuring bettor protection also depend on strengthening the formal market and rigorously combating illegality, including to expand the allocation of resources to social security, health, and the Military Sports Commission. In this sense, the association welcomes the inclusion of measures that block financial transactions from unlicensed sites and acknowledges progress such as Google’s decision to allow the distribution of betting apps on the Play Store, an example that should be followed by other platforms. It is actions like these that pave the way for a more transparent, secure, and sustainable sector in Brazil.