Brazil's 15% online gambling tax sparks industry backlash and legal uncertainty

A controversial tax could cripple Brazil's legal gambling sector—while illegal platforms thrive. Operators warn of retroactive chaos and lost investments.

, and Administrator

2026 March 25 . 1:02 PM

1 min read

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Brazil's 15% online gambling tax sparks industry backlash and legal uncertainty

Brazil's Senate has approved a controversial 15% tax on online gambling deposits. The move has sparked strong opposition from industry groups, who warn it could push players towards illegal platforms. Legal operators now face uncertainty over their future in the country. The proposed tax still needs approval from the Chamber of Deputies before becoming law. If passed, it would apply not only to future deposits but also retroactively for the past five years. This additional financial burden has left many licensed operators questioning their investments in Brazil's newly regulated market.

Industry bodies have criticised the measure sharply. The National Association of Games and Lotteries (ANJL) argues that the tax unfairly weakens legal operators, who already follow strict compliance and consumer protection rules. Meanwhile, the Brazilian Institute for Responsible Gaming (IBJR) claims the tax is mathematically unworkable, as the government aims to raise R$30 billion annually from a market generating around R$36 billion in total revenue.

The IBJR also highlights the dominance of unlicensed platforms, estimating that 51% of Brazil's gambling market operates illegally, handling R$78 billion in transactions each year. Both associations agree that the tax will only strengthen these unregulated sites, which avoid local licensing and taxes altogether. The proposed tax risks destabilising Brazil's regulated gambling sector further. With illegal platforms already controlling over half the market, licensed operators may struggle to compete under the new financial strain. The final decision now rests with the Chamber of Deputies.