Brazil: IBJR Warns Deregulation Would Boost Illegal Market Growth

Brazil.– April 14, 2026 – www.zonadeazar.com The Brazilian Institute of Responsible Gaming (IBJR) has warned that dismantling the current legal betting framework in Brazil could significantly expand the illegal market, removing player protections and impacting government tax revenues.

Overview

In response to recent statements by President Luiz Inácio Lula da Silva regarding the sector’s impact on household finances, the IBJR reaffirmed that regulation is the most effective tool to protect society.

The organisation argues that eliminating the legal market would not reduce demand, but instead drive users toward unregulated platforms lacking consumer protection and fiscal contribution.

Details / Context

According to a study by Instituto Locomotiva and LCA Consultoria, 51% of Brazil’s betting market operates illegally.

This segment generates approximately BRL 40 billion annually and causes an estimated fiscal loss of BRL 10.8 billion per year.

The IBJR highlights that strengthening the regulated market is the only effective way to combat illegal operations.

Key Topics

Regulatory:
Brazil has one of the most advanced regulatory frameworks globally.

Consumption:
Betting represents only 0.2% to 0.5% of household spending.

Debt:
80.2% of household debt is linked to credit cards.

Control Measures:
Regulated platforms prohibit credit cards and crypto payments, and enforce limits, self-exclusion and identity verification.

Economic Impact:
The sector generated BRL 9.95 billion in taxes in 2025, plus additional allocations to sports, tourism, security and education.

Licensing fees reached BRL 30 million per operator, generating BRL 2.5 billion initially.

Total investment reached BRL 7.5 billion, with a multiplier effect of up to BRL 28 billion and 15,500 jobs.

Future Outlook

The IBJR warns that regulatory rollback would increase illegal activity and reduce public revenues.

🔗 Edited by: @_fonta www.zonadeazar.com