Position on Taxation and Combating Illegal Betting

Position on Taxation and Combating Illegal Betting

The Brazilian Institute for Responsible Gaming (IBJR) emphasizes that the most effective path to increasing tax revenue and building a safe betting environment for Brazilians is through the effective fight against the illegal market.

Currently, the underground market already accounts for up to 51% of all bets in Brazil, moving around R$ 40 billion per year and generating an estimated loss of R$ 10.8 billion in tax revenue, according to a study by consultancy firm LCA in partnership with Locomotiva. For every 5 percentage points of market formalization, the country could collect an additional R$ 1 billion.

It is also worth noting that increasing the tax burden on sports betting operators regulated by the Federal Government (those with the “.bet.br” domain) could destroy a newly regulated market and push millions of bettors toward illegality, leaving them unprotected and vulnerable to fraud and scams perpetrated by illegal betting sites.

The Institute advocates for key measures such as requiring digital platforms to remove content from unlicensed operators within 48 hours; prohibiting technology providers from supporting unlicensed websites; and strengthening cooperation with payment service providers to prevent and curb suspicious financial operations.

The IBJR reaffirms its commitment to constructive dialogue for the development of a regulated, safe, and responsible market that contributes to economic growth and the protection of Brazilian consumers.