Official Statement
The Brazilian Institute of Responsible Gaming (IBJR) emphasizes that the most effective way to increase revenue and build a safe betting environment for Brazilians is through the effective fight against the illegal market.
Currently, the clandestine market accounts for up to 51% of all bets in Brazil, generating around R$ 40 billion (US$7.4bn) per year and causing an estimated loss of R$ 10.8 billion (US$2bn) in tax revenue for the country, according to a study by consultancy LCA in partnership with Locomotiva. For every 5 percentage points of market formalization, Brazil could collect R$ 1 billion (US$187m) more in taxes.
It is also worth noting that increasing the tax burden on sports betting operators regulated by the Federal Government (those with the ".bet.br" domain) could destroy a newly regulated market and push millions of bettors into illegality, leaving them unprotected and vulnerable to fraud and scams from unlicensed operators.
The Institute advocates several key measures:
- Require digital platforms to remove content from unlicensed operators within 48 hours;
- Prohibit technology providers from supporting unlicensed websites;
- Strengthen cooperation with payment service providers to prevent and block suspicious financial transactions.
The IBJR reaffirms its commitment to constructive dialogue for the development of a regulated, safe, and responsible market that contributes to economic growth and consumer protection in Brazil.
Brazilian Institute of Responsible Gaming (IBJR)
Source: GMB
