Fellipe Fraga Calls for Technical Debate on Brazil’s Betting Market
Brazil.- 23 September 2026 | www.zonadeazar.com Fellipe Fraga, Chief Business Officer and Head of Institutional Relations at Stellar Gaming, has published an open letter to Brazil‘s presidential candidates calling for future betting policies to be based on a clearer understanding of how the regulated market operates.
His intervention comes during an election campaign in which proposals have ranged from higher taxation to much broader restrictions on betting activity.
Open Letter to Presidential Candidates
Fraga argues that discussion of the industry’s future should begin with technical information on regulation, taxation, competition and consumer protection.
His position is that policies built on incomplete assumptions can produce consequences different from those originally intended.
Taxation Debate
One of the central issues raised in the letter concerns the tax burden faced by licensed operators.
Fraga challenged the idea that regulated betting companies pay only 13% in tax.
What the 13% Represents
According to the executive, the figure relates to a specific allocation calculated on Gross Gaming Revenue, GGR.
It does not, in his assessment, represent the full range of taxes and costs imposed on licensed operators.
Additional Taxes
Fraga noted that operators are also subject to obligations including:
- PIS/Cofins.
- ISS.
- Corporate income tax, IRPJ.
- Social Contribution on Net Profit, CSLL.
These sit alongside other costs associated with participation in the authorised market.
Licensing and Compliance
Regulated operation also involves expenditure relating to:
- Licensing.
- Regulatory supervision.
- Certification.
- Technology.
- Compliance.
- Responsible gambling.
- Regulatory controls.
Fraga argues that the full set of obligations should be considered when evaluating the industry’s tax and cost burden.
Legal Versus Illegal Competition
Another major theme is competition between licensed operators and illegal platforms.
Fraga describes the unlicensed market as one of the principal competitors facing regulated businesses.
Cost Differences
The executive argues that illegal platforms do not necessarily bear the same costs relating to:
- Taxation.
- Licensing.
- Certification.
- Consumer protection.
- Anti-money laundering.
- Regulatory compliance.
In his view, this can provide unlicensed operators with a competitive advantage.
Channelisation Risk
Fraga argues that excessively increasing the costs imposed on regulated operators could reduce the legal market’s ability to compete.
Under that scenario, he says some consumers may migrate to unlicensed platforms rather than stop betting altogether.
That is the executive’s position and forms part of the wider policy debate around channelisation.
Prohibition Also Addressed
The open letter also discusses proposals to prohibit or sharply restrict betting.
Fraga argues that removing legal supply does not necessarily eliminate existing consumer demand.
Reduced State Oversight
In his view, migration towards illegal platforms could reduce the state’s ability to:
- Supervise betting activity.
- Collect taxes.
- Apply responsible-gambling measures.
- Protect consumers.
- Enforce financial controls.
The actual scale of any such effect would depend on multiple regulatory and enforcement factors.
Not an Argument for No Restrictions
The letter does not advocate an unrestricted market.
Fraga identifies several areas that he believes should remain priorities for policymakers.
Problem Gambling Prevention
One is stronger prevention of gambling-related harm.
That includes mechanisms for identifying risky behaviour and intervening where vulnerable players may require additional protection.
Protecting Minors
Protection of children and young people is another priority raised in the letter.
Brazil‘s regulated market already requires identity controls and age restrictions, while debate continues over how those measures should be strengthened.
Responsible Advertising
Fraga also identifies advertising as an area requiring oversight.
His position is that standards should reduce harmful communications while still allowing consumers to distinguish authorised businesses from illegal operators.
Debt and Vulnerability
The letter acknowledges public concern over the effect of betting on indebted and financially vulnerable consumers.
Fraga argues that these issues should be addressed through targeted measures rather than by weakening the regulated market as a whole.
Sports Integrity
Sports integrity is also included among the priorities identified by the executive.
The relationship between operators, sports organisations and monitoring systems remains an important part of Brazil‘s regulated framework.
Anti-Money Laundering
Fraga additionally highlights prevention of illicit financial activity.
Authorised companies are subject to identification and monitoring requirements as part of their regulatory obligations.
Blocking Illegal Payments
One of the measures proposed is tighter action against payment methods used by unlicensed operators.
The aim would be to reduce the illegal market’s ability to function by targeting its financial infrastructure.
Accountability for Suppliers
Fraga also argues for greater accountability for companies providing services to illegal operators.
This could involve different participants within the technology and commercial supply chain.
Illegal Advertising
The executive supports stronger action against advertising for unauthorised betting sites.
His argument is that illegal marketing undermines efforts to channel customers towards supervised operators.
Apps and Websites
The letter also mentions:
- Removing illegal applications from app stores.
- Blocking websites.
- Stronger controls over digital intermediaries.
Such tools already form part of illegal-market enforcement discussions in several regulated jurisdictions.
Consumer Education
Fraga also calls for better education to help consumers identify authorised operators.
This could include information on legal domains, available safeguards and the differences between regulated and unlicensed platforms.
Reframing the Central Question
Fraga’s broader proposal is to change part of the framing of the debate.
Rather than asking only how betting can be reduced or eliminated, he argues policymakers should also ask how consumers who choose to bet can be channelled towards the regulated market.
Industry Responsibility
The executive acknowledges that betting companies have responsibilities in addressing gambling-related problems.
His position is that taking responsibility for player protection, advertising, integrity and harm prevention should be distinguished from measures that reduce the competitiveness of compliant operators.
Electoral Context
The letter was published during Brazil‘s 2026 presidential election campaign.
Betting has become a significant policy issue, with candidates and public officials discussing increased taxation, tighter restrictions and potential bans.
Industry Context
Brazil has operated a federally regulated fixed-odds betting market since 2025.
Since launch, the policy debate has increasingly moved towards enforcement, taxation, illegal operators, advertising, player protection and social impact.
Fraga’s intervention represents an industry executive’s position within that wider discussion.
Next Steps and Impact
The future framework will depend on decisions taken by the next government, Congress and relevant regulators.
For Stellar Gaming’s Fraga, the priority should be strengthening channelisation towards licensed operators while making enforcement against illegal platforms more effective.
The open letter therefore adds an industry perspective to an electoral debate that will continue to involve consumer protection, taxation, legality, competitiveness and the state’s ability to supervise the market.
Editó: @fonta
