Raising betting taxes does not solve Brazil’s fiscal problem and still exposes bettors to illegality, warns IBJR in the Senate

Raising betting taxes does not solve Brazil’s fiscal problem and still exposes bettors to illegality, warns IBJR in the Senate

At a public hearing on MP 1.303/25, the president of the entity says that the solution should focus on combating the underground market, which represents half of the bets in the country

The executive president of the Brazilian Institute for Responsible Gaming (IBJR), Fernando Vieira, took part this Wednesday (27) in a public hearing at the Senate’s Joint Committee analyzing Provisional Measure 1.303/25. The proposal increases the tax burden on sports betting, which, according to him, could “destroy a newly regulated market and push millions of bettors into illegality.”

“There is a belief that the betting sector can single-handedly cover Brazil’s fiscal accounts. This is unrealistic. The combined revenue of the five largest Brazilian companies is almost 50 times greater than the entire licensed betting market’s revenue. It is disproportionate and represents a complete breakdown of trust in the regulator, considering the market has only been regulated for eight months,” said the association’s representative, which brings together the main betting houses in Brazil and worldwide.

“It is not true that betting companies pay only 12% in taxes. That percentage refers to a specific contribution. With all consumption taxes, the burden already reaches 28% with the MP and over 40% with the tax reform — not counting the selective tax and corporate income taxes. This scenario does not bring sustainability. On the contrary: it breaks legal operators and strengthens the underground market,” he emphasized.

Today, the underground market already represents up to 51% of bets in Brazil, moving around R$ 40 billion per year and generating an estimated loss of R$ 10.8 billion in revenue. “For every 5 percentage points of formalization, Brazil collects an additional R$ 1 billion. The most efficient way to increase revenue is to combat illegal gambling, not to suffocate those who are regulated and paying taxes,” said Vieira.

According to him, the direct consequence of overburdening the sector is further exposing bettors. “People will not stop playing, but in the underground market, there are no rules, no audits, no protection. Externalities increase, and the consumer is the one who loses. Our appeal is clear: the solution lies in fighting illegality, consolidating the regulated market, collecting revenue efficiently, and protecting the bettor,” he concluded.

About IBJR

The Brazilian Institute for Responsible Gaming (IBJR) was founded in 2023 and brings together the leading betting companies in Brazil and worldwide. Its mission is to build an honest, sustainable, and responsible online betting ecosystem, always advocating for a regulated market.

The entity’s work is based on two essential pillars: combating the illegal market and promoting responsible gaming. We believe that efficient regulation is fundamental to driving the sector, strengthening the economy, and ensuring safety for both bettors and operators. That is why we work actively to confront illegal betting operators, who act outside the law, harm the industry, and put society at risk.

IBJR’s members include the following operators: A2FBR, Alfa, bet365, BandBet, BetBoom, BetMGM, Betnacional, Betsson Group, Entain (Sportingbet and Betboo), EstrelaBet, Flutter Brazil (Betfair), Kaizen Gaming (Betano), KTO Group, Novibet, Skill on Net (Bacana Play and PlayUzu), and Todos Querem Jogar (Bet do Milhão); and the associates: OKTO, Better Collective, Clever Advertising, OneKey Payments, and GeoComply.