Brazil: Haddad Suggests Rethinking the Betting Houses Model
Brazil – June 13, 2025 – www.zonadeazar.com Brazil’s Finance Minister, Fernando Haddad, stated that the betting market in the country should be reconsidered. Haddad made the statement on Thursday (June 12). According to him, the gross profit of these companies is BRL 40 billion per year — the difference between what they receive from bets and what they pay in winnings, known as GGR (Gross Gaming Revenue).
Haddad went further:
“They don’t generate jobs. Personally, I don’t like gambling. I think it’s something that should even be reconsidered by the National Congress,” he said.
“Out of those BRL 40 billion, they probably generate something under BRL 10 billion in taxes. That means a lower tax rate than a regular company,” he added.
His remarks follow the announcement of a tax increase for the sector. On Wednesday (June 11), the Federal Government published a Provisional Measure (MP), which among other actions, raises the tax rate on gaming revenues from betting operators from 12% to 18%.
Taxation on Betting Companies Increased from 12% to 18%
Haddad reiterated that the proposal originally submitted by the government in 2023 already aimed for an 18% rate. However, Congress approved a version with a 12% rate. The Provisional Measure published on Wednesday, June 11, now sets the rate at 18%.
In a joint statement, six associations representing betting companies said the tax increase on betting operators is “unjustifiable.” According to the statement, the sector is already “heavily burdened.”
They also noted that “the expected tax and social contribution for 2025 exceeds BRL 4 billion, allocated to strategic areas such as sports, health, public safety, tourism, education, and social security.”
In response, the National Association of Games and Lotteries (ANJL), which represents around 25 of the main licensed operators in the country, released an official note. In it, ANJL outlines further concerns regarding the increased tax rate and its risks for the market.
ANJL Statement
“The issuance of the Provisional Measure raising the fixed-odds betting sector’s tax rate from 12% to 18%, resulting in a total tax burden of over 50%, seriously compromises the sustainability of the legally established sector.
Companies that believed in the regulatory process — which began in January 2025 — paid BRL 30 million in licensing fees and continue to strictly comply with legal requirements.
However, they now face an economically unviable scenario. The foreseeable effects are: operator flight, investment retraction, formal job losses, and growth in illegal gambling, with direct impacts on legal certainty and the fight against organized crime. In practice, the proposal penalizes those who operate legally and benefits informality, undermining not only tax revenue but also public policies funded by the sector, such as sports and health.
The National Association of Games and Lotteries (ANJL), which represents around 25 of the main licensed operators in the country, reaffirms its full commitment to responsible and qualified institutional dialogue with the Federal Government. It is essential that any regulatory change be built with predictability, balance, and respect for the regulatory environment being consolidated in Brazil.”
Edited by: @_fonta – www.zonadeazar.com