During a public hearing at the Senate’s Economic Affairs Committee (CAE), Finance Minister Fernando Haddad clarified the government’s position regarding betting companies. According to him, the intention is not to demonize the industry but to ensure that it contributes fairly to the country’s economy.

Industry Perspectives

Bernardo Cavalcanti Freire, partner at Betlaw and legal advisor to the National Association of Games and Lotteries (ANJL), highlighted that the debate earlier this year established the fixed-odds betting contribution at 12%, in addition to other standard taxes — which can raise the effective rate to over 40%. He questioned the need for an increase so soon, arguing that raising the tax burden without first evaluating its effectiveness would be irresponsible.

Nickolas Ribeiro, founder and partner at Grupo Ana Gaming, believes that maintaining the current rate is a sensible decision. He explained that the sector is still in a structuring phase, with heavy investments in compliance, technology, and job creation. According to him, tax balance is essential to ensure competitiveness and prevent consumers from migrating to unregulated platforms.

The Impact of High Taxation

Alex Rose, CEO of InPlaySoft, cited examples from countries like Spain and Italy, where excessive taxes have strengthened the illegal market, undermining player protection and the purpose of regulation itself. He hopes that Brazil will find a balanced solution that meets the interests of all stakeholders.

Igor Sá, CMO and COO of HiperBet, emphasized the importance of betting taxes for the nation’s revenue. However, he warned that an excessive tax burden could hinder operational planning and fuel illegal gambling, which already represents a large portion of the market. According to him, the main focus should be on fighting unlicensed operations.

Predictability and Sustainable Growth

Fellipe Campos, managing partner at Luck.bet, pointed out that maintaining the current tax rate provides legal security and predictability for operators, while fostering the sustainable growth of Brazil’s betting market. He advocates for balanced policies that combine clear regulation, fair taxation, stronger enforcement against illegal operators, and incentives for formalization.

According to data from the National Telecommunications Agency (Anatel), 15,000 illegal betting websites were blocked in the first half of this year. During the same period, the Secretariat of Prizes and Betting (SPA-MF) collected approximately R$ 2.2 billion in authorization fees paid by licensed operators and around R$ 50 million in inspection fees.

Overview of Brazil’s Betting Market

Between January and June, about 17.7 million Brazilians placed fixed-odds bets, generating R$ 17.4 billion in revenue for betting companies. On average, each active bettor spent R$ 164 per month. These figures demonstrate the enormous potential of Brazil’s regulated betting market, which continues to expand rapidly.

The challenge now is to find a tax balance that allows the industry to grow sustainably — ensuring strong tax collection without suffocating operators and effectively curbing the spread of illegal gambling.

Taxation Summary – Brazil Betting Market

Source: Gaming365

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