Position on the Tax Burden on the Betting Sector

Position on the Tax Burden on the Betting Sector

The Brazilian Institute for Responsible Gaming (IBJR) believes that the persistent attempts to increase the tax burden on platforms operating legally in the country, including proposals that would double the current rate, do not strengthen the newly regulated sector. On the contrary, such measures encourage the expansion of the illegal market, reduce the competitiveness of licensed companies, and ultimately put consumers at risk.

A study by LCA Consultores, in partnership with the Locomotiva Institute, shows that between 41% and 51% of bets in Brazil still take place on unauthorized platforms, generating around R$ 40 billion per year and causing an estimated R$ 10.8 billion loss in potential tax revenue. For every 5 percentage points of market formalization, the country could collect approximately R$ 1 billion in additional revenue.

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

Combating this illegal market must be a priority. Measures that weaken the regulated environment only benefit those operating outside the law and make it harder to tackle the criminal networks that exploit the lack of oversight.

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