Sector representatives claim that the creation of the tax could compromise the viability of operations in the regulated market. According to industry executives, profit margins for betting companies are typically 13% to 14%.
O CEO da Paag, João Fragastated that the withdrawal of the proposal preserves the sustainability of the regulated sector. “By removing an additional tax that could stimulate informality and reduce the attractiveness of the legal market, Congress contributes to a more balanced and efficient ecosystem”these.
The sector also cites the case of Colombia as an example of the negative impact of taxation on betting. In the country, the increase in the tax burden resulted in a drop of around 50% in deposits made on legal platforms.
For the legal advisor of National Gaming and Lottery Association, Bernardo Cavalcanti Freirethe creation of a tax on deposits could encourage the migration of users to illegal operators. “Whenever they notice any tax on the amount deposited to play, consumers automatically migrate to clandestine platforms”he stated.
Study of LCA Consultores, with support from Brazilian Institute of Responsible Gaming, indicates that Brazil fails to collect more than R$10 billion per year due to the illegal online betting market.
According to the survey, 61% of respondents said they would have bet on irregular platforms in 2025.
