Brazil’s Betting Sector Faces Crossroads as CEO Warns Against Excessive Taxation

The Brazilian regulated betting market is now moving into a phase with increased pressure from taxation and the prevalence of illegal activities still remains a concern. During an interview with Ana Gaming, CEO Marco Tulio Oliveira has given a revealing insight into the current situation, naming taxation among the biggest challenges of the betting industry.

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Though the industry has advanced significantly since regulation took place, Oliveira said that increased taxes may actually harm the achievement of certain goals and objectives in the industry. “The main objective today in the industry is to fight the illegal market, and taxes that keep going up may result in the contrary“, he explained.

Tax Increase and Impact on Sustainability

There is an ongoing discussion regarding a gradual increase in taxation on Gross Gaming Revenue (GGR) in Brazil. From 12% it increased to 13%, while next year’s rate may be even higher (up to 15%). According to Oliveira, such a move poses serious threats to licensed operators.

“First of all, the operator has spent five years obeying the regulations and then suddenly, the rules have changed. With further increase in tax rates, the tendency will be to encourage the illegal market.”

The Brazilian market is known to follow one of the strictest regulation systems globally. Yet, Oliveira warns that crossing certain barriers will result in unpredictable results for the market.

The Illegal Market Is Still Significant for the Country

According to the expert, approximately 50% of Brazil’s betting market is still unregulated. It means that there are no taxes applied to revenues earned from users of illegal betting platforms. Oliveira claims that the reduction of the number of users would yield more financial benefits than increased taxation.

“If we cut half of the number of people using the illegal market, we may raise tax revenues by 50% without increasing taxes“, he explained.

Users who choose unlicensed betting sites usually enjoy better odds and less restrictive rules. As a result, they prefer the illegal options to regulated operators.

Impact of the Sector and Economic Contribution

The importance of the industry is becoming clearer each day. In just two months of 2026, the amount of tax revenue raised by betting operators amounted to approximately BRL 2.5 billion, a sum that didn’t exist before the regulation of the betting market.

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Ahead of the FIFA World Cup 2026, it may bring further success to the Brazilian industry. Traditionally, major events tend to boost engagement and bring new opportunities for the development of the market.

Growing Social Concerns and Responsible Gaming

Talking about potential social issues related to gambling, Oliveira has taken a rather balanced position. Though he admitted that any product can cause harm when consumed excessively, the industry still plays a vital role in providing people with entertainment.

“Excessive use of products and services can be harmful. Betting operators need to be regarded similarly to the beverage industry. The main issue here is safe entertaining, and dealing with excess consumption“, he explained.

It is also important for operators to find ways to collaborate with regulators in order to manage possible risks effectively.

Regulation Requires Industry-Government Collaboration

For Oliveira, regulation of the betting market cannot occur without collaboration with the industry. In fact, regulators should cooperate with the players of the sector in order to learn more about the market and tackle the potential problems that may arise.

“The best way to collaborate with the industry is to understand the reality of this market. It is necessary to pay attention to the small part of the market, where people move from entertainment to excessive consumption. Operators have a vested interest in this process, because we’ve always had programs to limit bets“, he added.

The future of the regulated betting market in Brazil depends on many factors. The success of the industry can depend both on proper regulation and fair taxation of licensed operators.

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Source: iGaming Brasil