In Brazil, the National Association of Games and Lotteries (ANJL) has raised concerns about possible government action to make online betting more regulated. The trade group believes stricter rules may result in increased illegal gambling, decreased consumer protection, and lower taxes.
The ANJL was established in March 2023 and represents Brazil’s regulated sports betting and lottery industries. The ANJL aims to ensure a safe, transparent, and responsible gambling environment and advocate for the needs of licensed operators.
The ANJL believes modifying the regulations that currently exist will negatively affect the market. Players would seek to gamble on the unregulated market due to fewer protections from fraud, underage gambling, and gambling addiction available on the unregulated side.
According to the Ministry of Finance, the taxes that would be lost due to restrictions on legal betting platforms may be as much as BRL 80 billion (approximately $15 billion) in the next five years. These tax losses could directly impact and reduce the funds allocated to public safety programs under PEC 18/2025, the proposed amendment to the constitution aimed at strengthening the Federal Police and coordinating the various security forces throughout Brazil. Reduced revenues could also negatively impact the funding of anti-organized crime programs and municipal guard programs.
Compared to the UK and Spain, both of which continue to strike a regulatory balance with consumer protection, there is a strong need for regulation. In addition, banning or restricting licensed gaming operations could create legal complications. Companies that have made large investments in Brazil – a total of BRL 2.6 billion ($496.6 million) in licensing fees alone, are likely to seek the government’s compensation or create additional strain on government resources. Some of these operators might even decide to withdraw from Brazil entirely if their business conditions deteriorate.
Brazil’s regulated gaming industry is currently one of the largest in Latin America, generating BRL 1.19 billion in revenue in 2024 and projected to grow to BRL 1.87 billion by 2030, providing a 7.9% compound growth rate as reported by Grand View Research. The significance of the gaming industry to both the economy of Brazil and to taxation cannot be underestimated.
According to Instituto Esfera, roughly 52% of betting activity in Brazil occurs through unregulated (illegally operated) gaming platforms that are typically linked to organized crime and using illegal funds. Furthermore, investigations have found that organized crime groups are using these platforms to launder drug money, extort bookmakers and otherwise operate outside of any regulatory authority.
In contrast, responsible gaming standards are followed by licensed operators who have gone through intense inspections. The Ministry of Finance’s data shows only 5 percent of all Brazilian gamblers wager more than BRL 70 (US$13) per month which indicates that betting with regulation has a low risk level.
