The Brazilian government’s announcement to raise the GGR tax from 12% to 18%, increasing the total burden to up to 56.25%, should be a reason to celebrate only for illegal operators. For those who operate within the law, follow the rules, and invest in the country, this move represents a direct attack on the sustainability of the sector.
We are talking about a market that, even after regulation, was already facing heavy barriers: complex licensing, legal uncertainty, lack of incentives, and now, suffocating taxation.
The most logical and immediate consequence?
Disinvestment.
Flight of serious operators.
Players migrating to illegal sites.
And the worst part: all this is happening in broad daylight.
The legal market is punished, while the illegal one thrives.
While regulated operators must comply with strict requirements such as KYC, certifications, audits, tax payments, and job creation with all associated tax obligations, illegal operators continue to operate freely in Brazil without any kind of control.
These sites do not follow rules, have no responsibility toward consumers, and worse, do not contribute a single cent in taxes to the country. They are the true “gray market,” but in Brazil, it has already turned black due to its massive growth.
And what does the government do?
Attacks those who are legal. And ignores those operating on the margins.
Advertising has also come under fire
As if the taxation weren’t enough, the Senate recently approved severe restrictions on advertising by betting companies (Bill 3.405/2023), making life even harder for those trying to operate ethically and transparently.
Now, communicators, athletes, and influencers could be banned from associating their image with operators, even when licensed.
Meanwhile, just watch a livestream on Instagram or browse YouTube for five minutes to see influencers promoting illegal bets with no punishment whatsoever.
Who benefits from this?
It’s hard not to conclude that Brazil is, in practice, expelling regulated operators and opening the doors to the underground market.
The math doesn’t add up. And the damage goes beyond the sector: fewer jobs, lower tax revenue, greater risks to players, and a country increasingly hostile to companies trying to operate within the law.
It’s time to stop punishing those who do the right thing.
Brazil needs to decide: does it want a professional, trustworthy, and regulated market — or will it keep pretending to regulate while strengthening illegal gambling?
Bruno Almeida
Regional Manager Brazil
