Context and Discussions in Congress
In recent days, the National Congress has been the scene of intense debates on the taxation of betting houses in Brazil. The government’s initial proposal was to increase the tax on the gross revenue of these companies from 12% to 18%. However, after discussions with parliamentarians and sector representatives, the idea was abandoned. Instead, a tax regularization program is on the agenda for operators who operated in the country between 2014 and 2024, before the segment was regulated. Furthermore, measures are being reinforced to combat irregular websites.
During a public hearing at the Senate’s Economic Affairs Committee (CAE), the Minister of Finance, Fernando Haddad, clarified the government’s position in relation to betting shops. According to him, the intention is not to demonize these companies, but rather to demand that they contribute to the country fairly.
Betting Industry Outlook
Bernardo Cavalcanti Freire, partner at the firm Betlaw and legal consultant for the National Association of Games and Lotteries (ANJL), highlighted that the debate that took place at the beginning of the year fixed the contribution of fixed-odd bets at 12%, in addition to other usual taxes, which could increase the effective rate to more than 40%. He questions the need for such a recent increase, stating that it would be inconsequential to increase the tax burden without first analyzing its effectiveness.
Nickolas Ribeiro, partner and founder of Grupo Ana Gaming, believes that the decision to maintain taxation at the current level is sensible. He argues that the sector is still in the structuring phase, with significant investments in compliance, technology and job creation. For him, tax balance is essential to guarantee competitiveness and prevent the migration of consumers to unregulated platforms.
Impacts of a High Tax Burden
Alex Rose, CEO of InPlaySoft, cited examples of countries such as Spain and Italy, where excessive taxes strengthened the illegal market, undermining the protection of players and the reason for regulating the sector. He hopes that Brazil finds a balance that suits all interested parties.
Igor Sá, CMO and COO of HiperBet, highlighted the importance of taxes on bet revenue for the country’s revenue. However, he warns that a high tax burden could hamper planned operations and encourage the illegal market, which represents a large portion of the sector. The main focus, according to him, should be combating clandestine operations.
Predictability and Sustainable Growth
Fellipe Campos, managing partner of Luck.bet, highlighted that the decision to maintain current taxation guarantees predictability and legal security for companies in the sector, in addition to favoring the sustainable growth of the betting market in Brazil. He defends balanced policies that combine clear regulation, fair taxation, combating the illegal market and encouraging formalization.
THE National Telecommunications Agency (Anatel) blocked fifteen thousand illegal betting sites in the first half of this year, according to a balance released by the Secretariat of Prizes and Bets of the Ministry of Finance (SPA-MF). In the same period, SPA collected approximately R$2.2 billion in authorization grants paid by authorized operators and around R$50 million in inspection fees.
Overview of the Betting Market in Brazil
Between January and June, 17.7 million Brazilians placed fixed-odd bets, generating revenue of R$17.4 billion for betting companies. On average, each active bettor spent R$164 per month. These numbers reflect the potential of the betting market in Brazil, which continues to expand.
The challenge now is to find a tax balance that allows the sector to grow in a regulated manner, guaranteeing tax collection without stifling companies and, at the same time, combating the spread of illegal operations.
Tax balance is essential to ensure competitiveness, attract responsible operators and prevent the migration of consumers to unregulated platforms.
| Factor | Impact |
|---|---|
| Current taxation | 12% on gross revenue |
| Initial proposal | 18% on gross revenue |
| Collection of grants | R$2.2 billion |
| Inspection fees | R$50 million |
| Number of bettors | 17.7 million |
| Betting revenue | R$ 17.4 billion |
| Average spend per bettor | R$164 per month |
Source: brazileconomy.com.br
Fonte Gaming365 – Brasil
