Increase in tax burden undermines marketing investments
One of the most significant changes was the increase in the tax rate on Gross Gaming Revenue (GGR), which rose from 12% to 18%. In addition, other tax obligations such as IBS/CBS and the Selective Tax may raise the total tax burden to over 50% of the net revenue of licensed platforms.
This increase considerably reduces the operational margin of betting operators, leading to cuts in strategic investments such as advertising, sponsorships, influencer marketing, and affiliate bonuses. The situation worsens when combined with strict regulatory requirements that limit promotional formats and impose responsibilities regarding published content.
We are committed to adapting to regulatory requirements, but it is undeniable that the increase in the tax burden forces us to rethink our entire media planning and acquisition channels. Brazil has the potential to become one of the largest regulated markets in the world, but balance is needed so that legalized companies remain competitive and can continue investing in sustainable growth.
How the new regulation affects digital marketing in the betting sector
1. Reduction of budget available for advertising
Budget cuts directly impact paid campaigns on social media, Google Ads, programmatic ads, and influencer sponsorships. Affiliates are also affected, receiving lower commissions.
2. Greater focus on content marketing and SEO
With restrictions on bonuses and flashy formats, the importance of content strategies, SEO, and brand authority increases. Platforms must invest in articles, videos, and educational actions about Responsible Gaming and user safety.
3. Stricter rules on advertising communication
The Provisional Measure also tightens the rules on advertising. Ads run by websites, social networks, and channels promoting unauthorized operators will be considered violations. This requires constant monitoring, campaign auditing, and full alignment with legislation.
4. Restructuring of affiliate programs
Affiliates can no longer receive commissions based on welcome bonuses and are subject to compliance rules similar to those for operators. This forces a shift in profile, requiring more professionalism, the creation of educational content, and adaptation to long-term performance metrics.
Challenges and opportunities
Despite the challenges, the regulation also presents an opportunity to differentiate brands committed to best practices. Companies that position themselves transparently, promote Responsible Gaming, and educate the public are more likely to gain consumer trust and build a loyal customer base.
Jogo de Ouro, for example, is expanding its educational content initiatives, adjusting its campaigns to the new scenario, and reinforcing its investments in compliance and institutional marketing.
Conclusion
The regulation of the iGaming market in Brazil marks a new era for the sector. However, the increased tax burden brings significant consequences to the marketing ecosystem of betting platforms, requiring quick and smart adaptation.
Companies that manage to adjust to the new legal requirements while balancing performance with responsibility will gain a competitive advantage. The key will be to innovate responsibly, invest in branding, and keep the focus on the player experience — always in compliance with the new legislation.
Elanio Weffson
CMO at Jogo de Ouro
