Official Position
The Brazilian Institute for Responsible Gaming (IBJR) acknowledges and welcomes the CAE’s efforts to combat the illegal market. The organization also stresses that repeatedly raising the tax burden on platforms that operate legally in the country does not strengthen the newly regulated sector. On the contrary: it fuels the expansion of the illegal market, undermines the competitiveness of licensed operators, and ultimately puts consumers at risk.
A study by LCA Financial Consulting shows that between 41% and 51% of bets in Brazil still take place on unauthorized platforms, which move around R$ 40 billion (US$7.5bn) per year and generate an estimated R$ 10.8 billion (US$2bn) in lost tax revenue. For every 5 percentage-point increase in market formalization, the country could collect roughly an additional R$ 1 billion (US$187m).
Sector regulation represents progress precisely because it establishes clear rules for integrity, traceability, and debt-prevention—elements absent in the illegal market, which not only harms the State and consumers but also helps finance illicit activities and organized crime in various ways.
Combating illegal platforms must be a priority. Measures that weaken the regulated environment only benefit those operating outside the law and hinder efforts to dismantle criminal networks that exploit the lack of oversight.
The IBJR reiterates that the most effective way to increase revenue and protect Brazilian consumers is to strengthen the formal market, ensuring legal certainty, rule compliance, and a competitive and sustainable environment.
Brazilian Institute for Responsible Gaming (IBJR)
Source: GMB
