Financial blockade suffocates illegal market, sector pays R$10B in
The new regulation shifts fiscal responsibility to banks and payment processors, shutting off the flow to clandestine operators. In its first regulated year, the industry contributed R$ 9.95 billion to the State, validating the market's economic potential.
The Brazilian betting market has begun to purge its illegal offerings not through police raids, but via the financial system. The full implementation of the new betting law has generated a structural change: now, banks, fintechs, and payment processors are jointly responsible if they allow transactions to unauthorized betting houses after notification from the Ministry of Finance.
This mechanism has shifted the focus of oversight. It no longer targets only the clandestine platform, but the pipelines through which the money flows. According to industry estimates, although about 50% of the betting volume still occurs in the gray market, the new financial entry barriers are severely hindering the operations of those who neither pay taxes nor comply with consumer protection regulations.
The industry's perspective: Integrity vs. Tax burden
André Gelfi, director of the Brazilian Institute of Responsible Gaming (IBJR), analyzed the impact of the measure. While acknowledging that the increase in the tax burden represents a challenge for profitability, he valued the control framework: "The tax increase is not good news. But the law creates responsibilities that come at a good time", he explained, referring to the cleaning up of the competitive ecosystem.
Record revenue: R$ 9.95 billion
The Ministry of Finance confirmed that the federal government collected R$ 9.95 billion (approx. USD 1.8 billion) from the betting sector during 2025. This figure is composed of:
- The 12% rate on gross gaming revenue (GGR).
- Standard corporate taxes: IRPJ, CSLL, PIS, and Cofins.
These data, released by the Federal Revenue Service, confirm that the regulated Brazilian market is a top-tier source of fiscal revenue, exceeding the initial expectations of the January 2025 regulation.
Lula’s stance and the role of the Central Bank
Despite the fiscal success, President Lula da Silva maintains a cautious stance. At a recent event at the Mint House, the president expressed his concern about the social reach of iGaming. "For a long time I heard that casinos were prohibited. Now what happened? The casino entered our homes with that amount of 'bets' that were created", he declared.
In this new scenario, the Central Bank has taken a leading role, overseeing the financial system, which now includes regulated betting houses, to prevent money laundering and ensure the traceability of funds in a market that already moves billions of reais annually.
Tags: Brasil, online betting Brazil, illegal online casinos Brazil, blocking illegal sites Brazil