HomeUncategorizedBetting sector tries to block taxation to compensate for IOF

Betting sector tries to block taxation to compensate for IOF


Betting industry representatives say that overtaxing bookmakers could harm the industry. The argument is that current taxation consumes, on average, almost 40% of bookmakers’ revenue.

The reaction is aimed at the speech by the Secretary of the National Treasury, Rogério Ceron. He said that taxing regulated bookmakers could compensate for a possible overturn of the increase in the Tax on Financial Transactions (IOF). Charging more taxes on betting has also been suggested by the president of BNDES and economists at Itaú.

Companies pay 30 million reais to operate regularly for 5 years. In addition, the 12% Gross Gaming Revenue (GGR) is added to the traditional taxes that service companies pay. Therefore, the taxation should result in a tax burden of around 36% on bets. The GGR represents the total amount wagered.

According to Bernardo Cavalcanti Freire, partner at Betlaw, a law firm specializing in betting houses, taxation is inefficient. Any increase in the rate on Gross Gaming Revenue could lead to the destruction of the sports betting sector in Brazil.

Taxation of this level would attest to the complete lack of knowledge of the subject by the Federal Revenue Service and the Ministry of Treasury. According to the sector, they seem to want the return of illegality to the segment”, he says.

“There are many companies that provide a similar service to ours, but in the illegal market, feeding those who operate irregularly and putting players at risk”, says Alex Rose, CEO of InplaySoft, an English company that works directly in the creation and development of platforms and providers for bookmakers.

Increased attention to the illegal betting market

On Tuesday, the 3rd, six associations (ANJL, IBJR, Abrajogo, ABFS, AIGaming and IJL) that represent the industry forwarded a request for a meeting with the ministers Fernando Haddad, of Finance, André Fufuca, of Sports, and Celso Sabino, of Tourism, to discuss in more detail the increase in a possible tax levy.

The sector also complains about the lack of control over the operation of illegal betting in the country. Professionals in the betting market estimate that the illegal market currently represents almost 40% of the betting industry.

“In Brazil, the risk is already evident: while the regulated market moved around 3.1 billion reais per month in the first quarter of 2025, the illegal market operated with estimates between 6.5 billion reais and 7 billion reais per month — figures that are completely beyond the control of the State,” says an excerpt from a note released by the associations that represent regulated betting.

Illegal betting in Brazil

For bookmakers legalized by the government, it is essential that illegal betting operations cease to operate in the country. “Combating illegal operations is essential for the consolidation of a regulated and reliable market in Brazil.

Blocking clandestine websites represents an important step forward in consumer protection, as well as preventing money laundering and valuing companies that operate in compliance with the rules.

This measure strengthens the credibility of the sector and demonstrates the country’s commitment to a more honest and transparent betting industry”, says Talita Lacerda, Executive Director of Operations at Grupo Ana Gaming, responsible for the 7K, Cassino and Vera brands.

“The iGaming market still has good room for growth in the country, but I believe that such improvement also involves the elimination of bookmakers that still operate illegally. This is because these illegal sites, which may often seem more advantageous to bettors at first, put both the money and data of these players at risk, in addition to affecting the development of the segment”, points out Igor Sá, CMO of HiperBet.

Illegal market harms the entire chain

“In Brazil, the risk is already evident: while the regulated market moved around 3.1 billion reais per month in the first quarter of 2025, the illegal market operated with estimates between 6.5 billion reais and 7 billion reais per month — figures that are completely beyond the control of the State,” says an excerpt from a note released by the associations that represent regulated betting.

For bookmakers legalized by the government, it is essential that illegal betting sites cease operating in the country. “Combating illegal operations is essential for the consolidation of a regulated and reliable market in Brazil. Blocking illegal sites represents an important step forward in consumer protection, as well as in preventing money laundering and in valuing companies that operate in compliance with the rules.

This measure strengthens the credibility of the sector and demonstrates the country’s commitment to a more honest and transparent betting industry”, says Talita Lacerda, Executive Director of Operations at Grupo Ana Gaming, responsible for the 7K, Cassino and Vera brands.

“The iGaming market still has good room for growth in the country, but I believe that such improvement also involves the elimination of betting houses that still operate illegally. This is because these illegal sites, which may often seem more advantageous to bettors at first, put both the money and data of these players at risk, in addition to affecting the development of the segment”, points out Igor Sá, CMO of HiperBet.


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