Statement of Repudiation from the Brazilian Gaming Association (ABRAJOGO)
“On the morning of Wednesday, November 22, members of the Brazilian Gaming Association (ABRAJOGO) were surprised by a post from the official account of the Brazilian Government, deliberately attacking the licensed sports betting and online gaming market.
The message attempts to justify the incoherent tax increase from 12% to 18% on companies authorized to operate in the country, as defined by the Ministry of Finance itself. However, the post admits that this measure did not advance when analyzed by the National Congress — yet still states that the government ‘will not give up’.
As the representative entity of the licensed betting segment, ABRAJOGO strongly repudiates this official statement, especially as it coincides with an important iGaming industry event taking place in the Federal Capital.
Representatives of the online betting ecosystem have always shown willingness to engage in dialogue with authorities, seeking mutual understanding and overcoming outdated perceptions that hinder the development of safe, responsible, and recreational entertainment for adult Brazilians.
The government’s post conveniently came out on the same day that the Finance and Taxation Committee (CFT) of the Chamber of Deputies voted and approved an urgency motion for a new bill increasing taxes on licensed online betting operators.
During a public hearing held on August 20 at the Chamber of Deputies, data was presented showing losses of R$10.8 billion (US$2bn) due to the illegal market. Experts, however, estimate that the number could be even higher, as more than 50% of Brazil’s betting market still operates irregularly, leading to significant revenue loss for the government.
Furthermore, operators and industry associations such as ABRAJOGO emphasize that the total tax burden — including PIS/COFINS, ISS, and IRPJ/CSLL — is already very high. Estimates indicate that the combined tax impact may represent between 45% and 50% of gross betting revenue.
Therefore, ABRAJOGO believes that the most coherent and sustainable path for an industry with less than a year of regulation is precisely the opposite: lower taxes, regulatory stability, and collaboration from authorities, in order to encourage more companies to become licensed.
This approach would strengthen the market, help the public better understand the recreational nature of gaming, and increase government revenue in a proportional and sustainable way — without penalizing those who operate legally, pay taxes, and contribute to innovation and job creation.”
ABRAJOGO
The Brazilian Gaming Association (ABRAJOGO) brings together companies and professionals from the gaming and betting industry, promoting the responsible development of the sector in Brazil. The association acts as an institutional voice in defense of regulation, legal certainty, and a sustainable environment for the market.
Source: GMB
