The industry leader presented the results of a recent study showing that the legal market currently moves around R$ 38 billion (US$6.9bn) in Brazil, while the estimate is that the clandestine online gambling market moves between R$ 26 billion (US$4,7bn) and R$ 40 billion (US$7.2bn).
Revenue
Among other problems caused by the clandestine market—such as the possibility of minors placing bets—Vieira also highlighted the government’s loss of tax revenue due to illegality.
“What concerns us is how much the government, how much society, loses in tax revenue—around R$ 10.8 billion (US$1.95bn) per year—because it is impossible to collect any type of tax from this illegal market,” said Fernando Vieira.
The Legal Director of the National Association of Games and Lotteries (ANJL), Pietro Cardia Lorenzoni, emphasized that, in addition to the loss of tax revenue, the clandestine market causes over-indebtedness due to the high irresponsibility of illegal operators, who even allow children and adolescents access to gambling.
“At several points, the Legislative House understands that advertising restrictions are beneficial; however, this is only true in consolidated markets. In England, for example, we have more than 60 years of experience regulating gambling—a mature market that can restrict advertising. Emerging online betting markets do not respond well to this type of measure, precisely because it tends to favor illicit activity. The player cannot distinguish between the illegal and legal markets,” explained ANJL’s legal director.
He also reminded that the sector’s tax burden is over 30%, and raising this rate will result in a decline in revenue.
“International experience shows that increasing the tax burden reduces revenue. This is economic theory; it is what happened in the Netherlands, where taxation was 30.4%, increased to 34.2%, and this led to a 9% decrease in tax collection.”
“It is the same thing that will happen in Brazil if Provisional Measure 1303/2025 is approved as it currently stands, with an 18% rate on GGR,” stated the ANJL representative.
According to André Wainer, Coordinator of Monitoring and Money Laundering at the Secretariat of Prizes and Betting of the Ministry of Finance, there are currently 80 companies authorized to operate in the Brazilian market. Oversight of the sector only began last year, following the regulation of the 2023 law.
Since then, Wainer reported that about 17,000 websites have been blocked for operating without authorization, an average of more than 1,700 pages per month. “We check the institutions that these illegal bets are using for financial transactions and notify those financial institutions.”
In the opinion of Congressman Caio Vianna, who proposed holding the debate at the Sports Committee, the best way to fight illegal companies is through “financial asphyxiation.”
“I believe that the fastest and most effective way to curb this market is through payment systems. Just taking down websites won’t solve the problem, because these criminals are able to set up new sites in different parts of the world very quickly.”
Source: GMB
