Brazil Sports Betting Faces Shifts as Regulations Tighten

• The Brazil sports betting market could see a raise on its tax from 12% to 18% of Gross Gaming Revenue, sparking backlash from licensed operators.
• The new tax measure, effective immediately but pending Congressional approval, could push the total tax burden above 56%.
• Senators are proposing strict gambling regulations, including credit-only betting and tougher ad restrictions, citing concerns over addiction and misuse of social welfare funds.
• Brazil’s top soccer clubs oppose a bill that would limit gambling sponsorships, arguing it could cripple a key source of funding.
• Regulators are pressuring Google and Apple to host legal betting apps, with 75% of bets placed via mobile devices.

BRASILIA – Brazil’s online sports betting and iGaming market is undergoing a dramatic transformation in 2025, with new regulations, tax hikes, and industry pushback creating a high-stakes battleground.

On Wednesday, the Brazilian government issued a Provisional Measure raising the tax rate on legal sports betting in Brazil (as well as iGaming) from 12% to 18% on Gross Gaming Revenue (GGR). Aiming to offset revenue losses from a rejected Financial Transactions Tax decree, the move is effective immediately but requires Congressional approval within 120 days.

But the move has raised concerns among the 79 licensed operators who have already paid over BRL 2.4 billion in authorization fees and expect to contribute over BRL 4 billion in taxes this year. The cumulative tax burden potentially exceeds 56% when combined with other levies and could render operations unviable. The tax increase is seen as a threat to investor confidence and market competition, with fears it could stifle the growth of a sector projected to surpass $4.3 billion by 2029.

Senators Push for Stricter Regulations

Adding to the industry’s challenges, Brazilian senators are proposing tough new regulations to curb online gambling’s social and economic impacts. These proposals include limiting betting to credit-only transactions to prevent the use of social welfare benefits — a concern heightened by a Central Bank study showing 5 million beneficiaries sent $500 million to betting companies via PIX in 2024.

Other measures aim to restrict advertising, impose age verification, and enhance responsible gambling tools to combat addiction, which has surged alongside Brazil’s betting boom. Critics argue these rules, which are still under debate, could further strain legal sports betting sites already facing high taxes, while supporters, including Senator Carlos Portinho, cite rising problem gambling and the industry’s perceived inability to self-regulate as justification.

Further, Brazil’s top soccer clubs are fiercely opposing Bill 2,985/2023, which seeks to limit gambling sponsorships and impose stricter advertising rules. Clubs rely on approximately R$1.6 billion ($281 million) annually from betting sponsorships and have united to denounce the bill.

The legislation, advanced by Senator Portinho, argues that soccer’s deep ties to betting fuel problem gambling, with clubs and media “addicted” to betting revenue. Critics like the clubs themselves warn that the bill could destabilize Brazil’s sports ecosystem, particularly as sponsorships fund player salaries and infrastructure.

Google and Apple Pressured to Host Betting Apps

Meanwhile, the Ministry of Finance and betting industry leaders are urging Google and Apple to allow regulated betting apps in their Brazilian app stores. About 75% of sports bets in Brazil are placed via mobile devices, yet Google and Apple have resisted hosting betting apps due to reputational concerns, despite permitting betting ads in their search engines.

With half of Brazil’s betting activity occurring on online sportsbooks, regulators argue that official app store access would ensure users engage with licensed operators.

These developments signal a critical juncture for Brazil’s betting industry, which accounts for 15% of global betting site traffic and generated $11 billion in wagers in 2023. The tax hike and proposed regulations threaten to squeeze operators’ margins.

As Congressional debates loom and legal challenges to Law 14,790/2023 await Supreme Court rulings, the industry faces uncertainty.

News tags: Apple | Brazil | Carlos Portinho | Google | Ministry of Finanace