Brazil Implements New Betting Law to Crack Down on Illegal Gambling
The recent regulatory overhaul of Brazil’s betting industry has ushered in a wave of significant changes, particularly impacting how betting companies operate under increased taxation. Industry insiders note that these new rules aim to curb illegal betting activities, which have long thrived outside the scope of regulation. According to assessments by sector representatives, the reforms make it considerably harder for illicit operators to function undetected. Brazil New Betting Law
One of the key modifications in the legislation pertains to the responsibilities of financial institutions. Now, banks, fintech firms, and payment processors are held accountable if they continue to process transactions for illegal betting sites after being officially notified by the Ministry of Treasury. This shift broadens the scope of regulation from just targeting unauthorized platforms to also scrutinize the financial channels that facilitate the flow of money.
Currently, it is estimated that nearly half of all betting activity in Brazil still occurs on unauthorized platforms. These sites operate without paying taxes or adhering to consumer protection standards, creating an uneven playing field and enabling illegal gambling to flourish. André Gelfi, the director of the Brazilian Institute for Responsible Gaming (IBJR), remarks that these new rules introduce greater integrity into the national market. “The tax increase is not good news. But the law creates responsibilities that come at a good time,” he states.
Meanwhile, President Lula has voiced his concerns regarding the expansion of online gambling. During an event at the Mint in Rio de Janeiro on the 16th, he linked the growth of this market to perceived negative effects, primarily emphasizing its extensive reach. He pointed out how gambling, once confined to physical locations, has now permeated people’s homes through digital platforms.
“For a long time I heard the discourse that casinos were prohibited. Casinos are gambling, they can’t be allowed, because the poor will spend money. Brazil couldn’t even have illegal gambling. Now, what happened? Casinos entered our homes with this number of betting options that were created,” Lula commented.
Read also: More Than 217,000 Brazilians Have Chosen to Leave Betting Platforms Since December
In January 2025, the federal government took a significant step by officially regulating online betting, establishing a framework for oversight and control. The Central Bank plays a crucial role in this new environment, tasked with monitoring the financial system—including licensed betting sites—to prevent illicit activities such as money laundering and fraud.
In terms of fiscal impact, the betting sector proved lucrative in 2025. The government collected a total of R$ 9.95 billion in taxes from betting companies that year. These revenues stem from a 12% tax on gross gaming revenue (GGR), as well as contributions from IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profit), PIS (Social Integration Program), and Cofins (Contribution to Social Security Financing). Brazil New Betting Law
