Brazil’s ANJL criticizes Finance Minister’s betting taxes plans
The National Association of Games and Lotteries criticized Fernando Haddad’s comments on increasing betting taxes
Key Points
- ANJL argues raising taxes risks undermining the regulated market’s sustainability
- The group says the 12% GGR rate already coexists with multiple other taxes and fees
- It warns higher rates could reduce legal operators and increase illegal activity
Brazil’s National Association of Games and Lotteries (ANJL) has pushed back against comments made by Finance Minister Fernando Haddad, who defended increasing taxes on the betting industry during a Senate hearing.
Haddad had called the measure “fair and balanced,” suggesting that taxing “billionaires, banks, and bets” would help reduce market privileges.
In a statement, ANJL said dialogue between the industry and the Federal Government had “always been based on mutual respect and a shared commitment to strengthen the regulated market,” but described Haddad’s proposal as “technically flawed and entirely ill-timed.”
The association warned that increasing tax burdens could erode legal operators’ sustainability, incentivize unlicensed platforms and reduce total Government revenue.
The group also challenged the perception that licensed operators pay only 12% in taxes, clarifying that this percentage applies to GGR after prize payouts.
In addition, operators already face a 25% corporate income tax, 9% social contribution tax, up to 9.25% in inspection fees, social security charges and municipal service taxes ranging from 2% to 5%.
Good to know: ANJL also criticized a proposal to ban social welfare recipients from betting, calling it “misguided”
ANJL stressed that the existing model was established after extensive debate in Congress in 2023 and has supported over 80 licensed operators who paid BR30m ($5.5m) each for five-year licences.
Revising these terms prematurely, the group argued, could lead to legal disputes and replicate international cases where higher taxes resulted in lower compliance and overall revenue.
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