The heavy tax burden on Brazil’s sports betting and iGaming sector has sparked serious concern among operators and industry experts. The recent increase in taxes is reducing the competitiveness of regulated platforms and encouraging the expansion of unauthorized websites that operate without paying taxes or ensuring consumer protection.
Mounting Pressure on the Industry
Since the regulation of online betting, the Brazilian market had been consolidating as one of the most promising in Latin America. However, the recent adjustment of tax rates — particularly the increase in the IOF — has brought uncertainty and directly impacted the profits of licensed companies.
Operators argue that excessive taxation makes it impossible to compete with foreign platforms that offer better odds and bonuses while ignoring local regulations. This creates an uneven playing field and threatens the government’s own tax revenue.
💡 Learn more: Discover how other Latin American countries balance taxation and competitiveness in the betting sector at Gaming Economics.
Consequences for the Market and Bettors
The increase in the tax burden could have significant side effects:
- Flight of international investments to more attractive markets;
- Migration of bettors to illegal platforms with lower data and payment protection;
- Decline in actual tax collection, as betting volume shifts away from the regulated environment;
- Loss of confidence in the regulatory system, undermining the credibility of Brazil’s betting market.
Pathways to Balance
Experts suggest that the government should adopt a progressive taxation model capable of ensuring public revenue without stifling legal operations. The market’s sustainability depends on clear, stable, and competitive rules aligned with international practices.
Dialogue among regulators, companies, and lawmakers is expected to continue in the coming weeks, with hopes of fiscal adjustments that strengthen the country’s legal betting ecosystem.
Latam Bet Hub continues to follow developments in Latin America’s betting industry, bringing news, analysis, and trends on regulation, economics, and innovation.
