Brazil: Senator Eduardo Braga links higher taxes on “bets”

Brazil.- 17 November 2025 www.zonadeazar.com Senator Eduardo Braga (MDB-AM), rapporteur of the bill to double taxation on sports betting (“bets”) in Brazil, states that the tax increase will only be approved if an effective crackdown on the illegal betting market precedes it.

Overview

Amid legislative deliberations on taxing fixed-odds sports betting (“bets”) in Brazil, Senator Eduardo Braga links the proposed tax hike to the state of enforcement against illegal gambling operations. His stance is significant in a market where licensed operators demand a level playing field while unlicenced activity continues to grow.

Details / Context

The bill in question proposes to roughly double the tax rate applied to legally operating betting firms in Brazil, aiming to raise government revenue. Senator Braga argues that such an increase is only justified if accompanied by a robust enforcement strategy that significantly reduces the volume of illegal bets. According to his statements, without that “pre-condition” of tackling unlicenced activity, raising taxes on the regulated sector would be unfair and counterproductive.
His approach underlines a key tension in the sector: the government’s desire for increased revenue vs. the regulated operators’ demand for fairness. The rapporteur’s position signals that the Senate foresees a regulatory framework combining taxation and market integrity.

Key Sub-topics

  • Regulatory fairness: Licensed operators seek protection from competition by unlicenced firms.
  • Tax revenue vs enforcement: The balancing act of raising taxes while ensuring the illegal market is contained.
  • Implications for the iGaming industry: Regulated platforms, suppliers and affiliates must anticipate that tax changes may depend on enforcement outcomes.
  • Consumer protection and responsible gambling: Reducing illegal market share can enhance user protection and sector transparency.

Forward-looking view

Over the coming months, Brazil’s betting sector may face both higher taxes and increased compliance expectations. Legal operators will need to demonstrate their value in a regulated environment and differentiate themselves from illegal competitors. Regulators and legislators will face pressure to deliver both revenue and control. The stance taken by Senator Braga shows that the conversation is about more than just tax rates: it’s about the integrity of the market.

🔗 Edited: @_fonta www.zonadeazar.com

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