“Close the door to illegality and there’s no need to double the tax,” says Senator in Brazil

Senator Eduardo Braga, main official of the bill that raises taxes on betting operators and certain fintechs, signalled that he will propose a gradual and moderated increase to the current rate.

His remarks came during an interview with C-Level in Brazil, where he criticized the fragmented debate in Congress and emphasised the need for stronger financial oversight.

Braga framed the central issue not as tax revenue, but market integrity. In his words, “If you close the door to illegality, you don’t need to double the tax.” 

He argued that the persistence of unlicensed betting and unmonitored fintech operations represents a structural failure in enforcement rather than taxation. 

The senator advocates mandatory reporting to the Financial Intelligence Unit whenever banks detect unusually high movement into a single account, even when disguised as multiple small transactions, to expose criminal activity, including illegal betting, money laundering and organized crime.

While fintechs are mentioned in the bill, Braga stressed that the main legislative pressure is aimed at betting platforms operating outside Brazil’s regulatory framework.

According to Braga, the forthcoming report will prioritize enforcement tools designed to drastically reduce illegal betting activity, followed by a phased tax adjustment that aligns Brazil with international benchmarks.

He criticized attempts to conflate the debate with political resistance or industry lobbying, saying he has “no ties to any operator” and that the bill’s objective is to protect public finances, legal operators and consumers alike.

The senator is expected to outline the new rates and enforcement mechanisms during the official presentation of the report, emphasising that tax reform alone cannot stabilize the sector without first dismantling the illegal market that competes directly with regulated operations.

David Thompson

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