Brazil Urged To Target Illegal Market Before Raising Taxes

Brazil.– November 28, 2025 – www.zonadeazar.com  Industry specialists warn that nearly half of Brazil’s betting activity still occurs on illegal platforms, a scenario that poses financial, regulatory and consumer-risk challenges. According to market assessments, raising taxes on licensed operators without first containing the illegal market could weaken the regulated sector, undermine competitiveness and accelerate migration toward unlicensed sites.

Details / Context
Regulated companies comply with licensing, integrity checks, guarantees, KYC processes and tax contributions. Illegal operators, on the other hand, bypass all obligations, operate offshore, use aggressive digital advertising and pose serious risks to players. Experts argue that increasing the tax burden on companies that follow the rules punishes the compliant industry while leaving the illegal system untouched.

They highlight that the priority should be enforcement: blocking illegal domains, strengthening financial monitoring, enforcing sanctions, coordinating between regulators and digital platforms, and educating players on the risks of unlicensed sites. The current proposal to raise taxes could reduce investment, limit innovation and shrink the formal market.

Subtopics

  • Fiscal distortion: Illegal operators generate zero tax revenue, while licensed ones shoulder the full burden.

  • Market imbalance: Higher taxes could tilt competitiveness in favor of unlicensed platforms.

  • Player safety: Illegal websites offer no guarantees of security, payout or data protection.

  • Long-term sustainability: Enforcement first, taxation later, is the formula to stabilize the sector.

Future outlook
Strengthening enforcement and reducing the size of the illegal market would naturally increase state revenue while protecting consumers. A more balanced, safer and regulated environment would also attract investment, generate jobs and elevate market standards. Specialists insist: only after the illegal half of the market is contained should tax discussions move forward in Brazil’s betting industry.

🔗 Edited by: @_fonta www.zonadeazar.com

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