Brazilian Betting Industry Professionals Highlight the Sector’s Social and Economic Contributions

While debating gambling-related legislation, experts from the regulated gambling sector in Brazil have emphasized the social, economic and institutional impacts of gambling. Their remarks coincide with current discussions in Congress concerning regulation of industries, public financing and taxation.

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Those who expressed their perspectives included 1PRA1’s CMO Tiago Grecco, Paag’s CEO João Fraga, EBAC’s (Brazilian Company for Compulsory Gambling Support) Director of Knowledge Cristiano Costa, and digital influencer Daniel Fortune, a friend of responsible gambling.

Funding Public Institutions Through Betting Revenue

A central question that was raised was whether or not the betting tax money should go to public institutions. The percentage of betting revenue that will be transferred to the Federal Police Activities Equipment and Operations Fund (Funapol) will be subject to a gradual increase and will reach 3% by 2028, according to Provisional Measure No. 1,348/2026 that was approved by the Brazilian Senate.

The measure was an important step for public administration, Grecco said: “The Provisional Measure enables a strategic contribution, generating direct benefits for the institutional development of the Federal Police.”

He also said the regulated betting sector can go beyond tax revenues to bring benefits to Brazil, by sponsoring sport, offering job opportunities and boosting the economy.

Employment and Broader Social Contributions

João Fraga said that Brazil’s legal betting sector is already a major job provider. He said the industry has added over 10,000 direct and 5,500 indirect positions since regulation took effect, as the number of licensed operators and service providers has grown.

In the meantime, the other bill passed by the Committee for the Rights of Persons with Disabilities in the Chamber of Deputies is set aside for the National Secretariat for the Rights of Persons with Disabilities, which is part of the Ministry of Human Rights and Citizenship, and would receive 10% of the amount generated from the betting tax.

Bernardo Cavalcanti Freire, legal consultant for the National Association of Gaming and Lotteries (ANJL) and partner of Betlaw, stated that these projects reflect the sector’s other activities in the Brazilian economy.

“These developments continue to demonstrate that companies in the sector are concerned with social issues and also play an important role in other areas of the national economy. It is worth remembering that this is one of the most heavily taxed industries in the country and that it has contributed to supporting education and activities that are part of Brazilian culture, such as sports and Carnival.”

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Responsible Gambling Remains a Central Theme

In addition to economic aspects, industry stakeholders emphasized the importance of upholding high standards for responsible gambling in the long-term success of Brazil’s regulated betting market.

Daniel Fortune stressed the need to ensure that consumers are using licensed operators and not illegal operators.

“It is essential to strengthen the regulated market, where there is supervision and responsible gambling mechanisms. Illegal platforms operate outside the law and leave bettors completely unprotected.”

Cristiano Costa agreed, saying that without continued investment in player protection initiatives, it is not enough to grow the economy.

The psychologist believes that the integral components of responsible gambling policies are: psychoeducation, self-control tools, and accessible support services, and that these factors play a crucial role in the sustainable development of the gambling market.

Balancing Growth with Consumer Protection

Industry professionals’ comments come amid the debate over Brazil’s rapidly changing gaming landscape. Supporters tout tax revenues, employment creation and funding available for public programs, but also say that ongoing investment in effective gambling controls is key to maintaining public trust.

As lawmakers review current and new regulatory proposals, a fine balance is being struck between the need to facilitate economic development, promote better consumer protection, and provide effective regulatory oversight of the regulated market.

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Source: SBC Noticias