If we were to draw an analogy with the climate issue, Brazil is currently experiencing a fiscal storm. The government is seeking to increase revenue without impacting the country’s productive activity. In this scenario, the betting sector is in the eye of the storm.
In light of this, actors from the public sector and the production chain have presented their opinions on the government’s actions. This is what Congressman Caio Vianna (PSD-RJ) did in his article, published this Thursday (17).
In his text, published on the Congresso em Foco website, the congressman analyzes Brazil’s current fiscal situation and the government’s actions regarding the gambling sector in Brazil.
“It’s crucial to broaden the debate on sectors with high revenue-generating potential that currently operate outside the system. The illegal gambling market is a prime example: it generates billions of reais annually, represents almost half of the sector in the country, and offers no return to society.”
Caio Vianna closely follows the challenges of the betting sector
Caio Vianna is chairman of the Permanent Subcommittee on Sports Betting Regulation of the Sports Committee of the Chamber of Deputies. As such, he closely monitors the progress and challenges faced by the sector.
He also stated that commitment must be paramount to state efficiency, tax justice, and the protection of the public interest. The parliamentarian also commented on the increase in taxation and its connection to the growth of the illegal market.
“It is necessary to be clear that we cannot turn a blind eye to the actions of a significant portion of the market that operates outside the law, without any fiscal or regulatory burden.”
“Today, companies seeking to operate within the rules face a high burden: around 26% on gross revenue (12% Gaming Tax, 9.25% PIS/COFINS and up to 5% ISS), in addition to 34% on profit (IRPJ and CSLL).”
“They also bear monthly inspection fees that can exceed R$2 million per operator, in addition to requirements such as financial guarantees and compliance systems. This system was designed by the National Congress precisely to ensure a minimum level of protection for gamblers and to guarantee that, even though it’s not a traditional productive sector, some of these resources return to society.”
According to Vianna’s article, however, none of these requirements apply to the illegal market. In the text, the congressman states that this is a criminal activity that generates significant capital gains for illegal operators. Furthermore, these illegal websites are not accountable to the state or assume any social responsibility.
Illegal betting market moves billions in Brazil
“A study by LCA Consultoria indicates that 61% of Brazilian gamblers accessed illegal websites in 2025 alone, and the estimated impact on public coffers reaches an impressive R$10.8 billion per year in lost revenue.”
For him, the most effective way to strengthen revenue collection and protect consumers is to decisively combat the illegal market. Countries with consolidated regulatory frameworks, such as Denmark and the United Kingdom, have prioritized legalization with clear rules, efficient oversight, and public awareness campaigns, achieving channeling rates above 90%.
“Brazil needs to build a regulatory environment that inhibits clandestine activity, educates consumers, and promotes responsible formalization.”
In the post, he makes a point of making it clear that, in Brazil, the difference between a legal and an illegal site is still invisible to the average user. “Eight out of ten bettors don’t know how to distinguish between an authorized operator and an illegal one. Therefore, it’s crucial to invest in bettor education and intensify the fight against the illegal market. A regulated environment will only be effective if it’s also understandable and accessible to the public.”
Finally, in his conclusion, Congressman Caio Vianna defends the position against the illegal betting market and points out actions to be taken in Brazil.
“This is one of the central challenges of the Permanent Subcommittee on Sports Betting Regulation, and we will remain steadfast on this path. My commitment is to conduct discussions responsibly, seeking solutions that combat illegality and ensure greater security for bettors and a return to society.”
