As reported by Radar, President of the Deputies Chamber Hugo Motta informed Davi Alcolumbre, President of the Federal Senate, that he would not put the proposal to a vote in the Chamber of Deputies. The text would double the tax rate charged on the gross gaming revenue of betting companies. Because the bill is proceeding under terminative urgency, it would not need to pass through the full Senate floor if approved by the CAE (Economic Affairs Committee).
While the National Confederation of Industry (CNI) is leading a movement in favor of creating a selective tax on online betting, lawyers and betting executives describe any potential tax increase as a “disaster,” arguing that the measure would create “unprecedented legal uncertainty” and fuel the spread of illegal betting sites.
Industry associations representing regulated betting companies estimate that illegal platforms currently account for roughly half of all online bets placed in Brazil.
“The bill lacks any technical or social justification and jeopardizes the credibility of the regulatory framework,” says Bernardo Cavalcanti Freire, partner at Betlaw and legal advisor to the National Association of Gaming and Lotteries (ANJL). “First, there must be a crackdown on illegal operators before any measure of this kind is considered.”
He adds that today, with a 12% tax on gross gaming revenue and the other taxes paid by any Brazilian economic activity, the effective tax burden on betting platforms can exceed 40%.
Galerabet CEO Marcos Sabiá says that if the goal is to increase public revenue, the most “efficient and appropriate measure would be to fight relentlessly and tirelessly against the illegal betting market” — which, in his view, besides boosting tax collection, would “eradicate” a slice of the market that, “in addition to tax evasion, is responsible for a series of offenses that harm society.”
Nickolas Ribeiro, partner and founder of Grupo Ana Gaming, the holding behind the brands 7k, Cassino, and Vera, points out that the sector “is still in a structuring phase, with significant investments in compliance, technology, and job creation,” and that “tax balance” is essential to “prevent consumers from migrating to unregulated platforms, as has already occurred in other countries.”
The figures cited by industry executives are based on a study by LCA Consultores, which estimates that between 41% and 51% of the Brazilian betting market still operates illegally—resulting in as much as R$ 2.7 billion (US$500m) in lost potential tax revenue in the second quarter of 2025 alone.
Source: Veja
