Gaming

Brazil: Illegal betting threatens tax revenue, causes losses of R$ 10.8 billion per year

Friday 22 de August 2025 / 12:00

⏱ 1 min read

(Brasília).- Despite the regulation of online sports betting in 2023, the sector still faces a major obstacle: the strong presence of the underground market. The issue was discussed on Wednesday (20) at a public hearing in the Chamber of Deputies, when experts and authorities warned of the economic and social damage caused by illegal operations.

Brazil: Illegal betting threatens tax revenue, causes losses of R$ 10.8 billion per year

According to Fernando Vieira, CEO of the Brazilian Institute for Responsible Gaming, nearly half of the companies offering online betting in Brazil still operate without authorization.

A recent study he presented estimates that the legal market moves around R$ 38 billion per year, while illegal platforms range between R$ 26 billion and R$ 40 billion.

Beyond enabling underage gambling, illegality has a strong impact on public accounts. “What concerns us is how much society loses in revenue - around R$ 10.8 billion per year - since there is no tax collection in this parallel market,” Vieira said.

André Wainer, coordinator for Monitoring and Money Laundering at the Ministry of Finance’s Secretariat for Prizes and Betting, reported that 80 companies are currently authorized to operate in Brazil. He pointed out that enforcement only began last year, following the new law, and has already resulted in the blocking of around 17,000 illegal websites - an average of more than 1,700 per month.

According to Representative Caio Vianna (PSD-RJ), who requested the debate in the Sports Commission, the most effective strategy to address the problem is to cut off illegal operators’ access to payment systems. “Just taking down websites doesn't solve the problem, because they can quickly reappear in other countries. The fastest and most efficient way to combat this market is through financial suffocation,” he argued.

Categoría:Gaming

Tags: Sin tags

País: Brazil

Región: South America