IBJR proposes three alternatives to increasing tax for Brazilian gambling market

The Brazilian Institute for Responsible Gaming (IBJR) has issued a statement cautioning that increased taxation on regulated betting operators could drive consumers toward the country’s substantial illegal market, which reportedly already accounts for up to 51% of all wagering activity.

The intervention follows the recent withdrawal of Provisional Measure 1,303/2025, which would have increased the gross gaming revenue tax from 12% to 18%. It would also have introduced a voluntary scheme requiring companies to pay 15% in taxes plus 15% in fines on operations conducted between 2014 and 2024. 

The Chamber of Deputies voted 251-193 to shelve the measure before it could proceed to Senate review.

According to research conducted by consultancy LCA with Locomotiva, Brazil’s clandestine betting market generates approximately BR40bn ($6.8bn) annually, resulting in an estimated BR10.8bn loss in potential tax revenue. 

The institute argues that combating illegal operations represents a more effective path to increased government receipts, with each five percentage point gain in market formalization potentially yielding an additional BR1bn in tax collection.

The organization has expressed concerns that excessive tax burdens on federally regulated operators, identifiable by their .bet.br domain extensions, could undermine the nascent regulatory framework.

Good to know: Fernando Vieira has recently stepped down from his role at the Brazilian Institute of Responsible Gaming

Such measures risk pushing millions of consumers toward unlicensed platforms where they lack consumer protections and face increased exposure to fraudulent activities.

To address the illegal market challenge, the institute has proposed three primary enforcement mechanisms.

These include mandating digital platforms to remove content from unlicensed operators within 48 hours, prohibiting technology providers from supporting unlicensed sites and strengthening cooperation with payment processors to identify and prevent suspicious financial transactions.

Carlos Mendez

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Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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