Brazil’s Betting Industry Unites Against Proposed Tax Hike

^{Pictured: Magnho Jose, President of the Brazilian Legal Gaming Institute}

Six of Brazil’s leading gambling trade associations have formed a coalition to oppose proposed increases to betting taxes, warning the move could undermine the country’s regulated gaming framework.

The joint statement — released on June 3 — urges lawmakers to reconsider a planned “selective tax” (commonly referred to as a sin tax) that would be added to the already extensive tax load faced by legal betting operators.

The six associations behind the appeal are:

• Brazilian Association of Games and Lotteries (ABRAJOGO)
• Betting and Fantasy Sports Association (ABFS)
• International Gaming Association (AIGAMING)
• National Association of Games and Lotteries (ANJL)
• Brazilian Institute of Responsible Gaming (IBJR)
• Brazilian Legal Gaming Institute (IJL)

In the statement, the coalition argues that layering new levies onto a sector still in early regulatory consolidation is “unjustifiable from any technical, economic or public policy perspective.” They warn it could push more activity into the black market.

The current tax stack is already substantial, including 12% on gross gaming revenue, 9.25% in PIS/COFINS, up to 5% in municipal ISS tax, and a 34% corporate income tax. The addition of a sin tax, they caution, would threaten to destabilize the regulated market.

Data from Q1 2025 suggests that Brazil’s regulated market handles about R$3.1 billion (€418.4 million) monthly. However, the unregulated market is still estimated to process between R$6.5 billion and R$7 billion (about €1 billion) each month.

The coalition is calling on lawmakers to shift focus toward comprehensive tax reform, digital economic formalization, and proper oversight of currently unregulated sectors. “Efficient taxation should not be confused with confiscation,” the statement concludes.