IBJR warns that increased taxes on betting could strengthen the illegal gambling market in Brazil.
The Brazilian Institute for Responsible Gaming (IBJR) warned that proposals to raise taxes on regulated betting companies could strengthen the illegal market in the country. The statement was released this Thursday (16) by the association that represents the main companies in the gaming sector in Brazil.
The organization expressed concern about initiatives that could double the current tax rate on legalized betting operations. According to IBJR, such a measure would reduce the competitiveness of licensed platforms, encouraging the growth of the illegal market.
The parallel betting market in Brazil presents significant figures. Between 41% and 51% of the volume of bets placed in the country still occurs on platforms without official authorization. This unregulated segment moves around R$ 40 billion per year, according to a survey by LCA Consultores in partnership with the Locomotiva Institute.
The operation of these unregulated platforms generates an estimated loss of R$ 10,8 billion in annual revenue for public coffers. The study also points out that for every 5 percentage point increase in the formalization of this market, the country could obtain an additional R$ 1 billion in tax revenue.
The Brazilian Institute highlights that the recent regulation of the sector established guidelines for the integrity and traceability of operations. The rules include mechanisms to prevent bettors from becoming indebted, elements absent in the illegal market.
According to IBJR, illegal platforms harm state revenue and consumers, in addition to serving as a source of funding for illicit practices and criminal organizations. The association argues that combating this illegal market should be treated as a priority by the authorities.
The statement from the Brazilian Institute for Responsible Gaming points out that measures that weaken the regulated environment benefit operators who act outside the law. Such actions hinder efforts to combat criminal networks that take advantage of the lack of oversight in the sector.
The IBJR (Brazilian Institute of Gambling) states that the most effective strategy to increase tax revenue and protect Brazilian gamblers is to strengthen the formal market. This includes guaranteeing legal security, ensuring compliance with established rules, and promoting a competitive environment for the betting sector in Brazil.
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Official statement from IBJR:
The Brazilian Institute for Responsible Gaming (IBJR) believes that insisting on raising the tax burden on platforms that operate legally in the country, including proposals that would double the current rate, does not strengthen the newly regulated sector. On the contrary: it encourages the growth of the illegal market, reduces the competitiveness of licensed companies and, ultimately, puts the consumer at risk.
A study by LCA Consultores, in partnership with the Locomotiva Institute, indicates that between 41% and 51% of bets in Brazil still occur on unauthorized platforms, generating around R$ 40 billion per year and resulting in an estimated loss of R$ 10,8 billion in revenue. For every 5 percentage points of market formalization, the country could collect approximately an additional R$ 1 billion.
The regulation of the sector represents progress precisely because it creates clear rules of integrity, traceability, and prevention of indebtedness—aspects absent in the black market, which not only harms the State and the consumer but also finances illicit practices and organized crime in various ways.
Combating this illegal market must be a priority. Measures that weaken the regulated environment only benefit those who operate outside the law and hinder efforts to confront criminal networks that take advantage of the lack of control.
IBJR emphasizes that the most effective way to increase revenue and protect Brazilian consumers is to strengthen the formal market, ensuring legal certainty, compliance with rules, and a competitive and sustainable environment.
