Warnings from Brazil have emphasised that more should be done in order to compliment the regulated market rather than suffocate its growth heading into 2026.
André Gelfi, Director General of the Brazilian Institute for Responsible Gaming (IBJR), detailed that the Brazilian market has barely commenced with regulation as he warned against hampering the market’s development with increasing regulations.
He stated: “The game has barely started, and we are already talking about raising taxes as if it were completely natural. It isn’t.”
Speaking to SBCNoticias, Gelfi detailed that there is a balance that needs to be found when regulating the market, as the challenge of channelisation rates remains significant in a market that is fairly volatile.
“If you increase taxes now, you simply tip the price equation in favour of the clandestine operator. It’s mathematics,” continued Gelfi.
“A bettor will choose the product that gives a better return unless they fully understand the risks of illegality — and today, they don’t.”
Looking at warnings from other markets – he continued “These are not abstract warnings. They are real cases showing what happens when governments tax the consumer instead of tackling unlicensed operators.”
He warned that the narrative around Brazilian betting needs changing significantly, emphasising “Banks already block credit for deposits into betting accounts. The Brazilian debt problem is structural — rooted in banking fees and consumer credit — not in bets that represent 0.3% of GDP.”
“The government should be strengthening the regulated ecosystem, not weakening it with proposals that have already failed internationally.”
“Only once the illegal market is significantly reduced can Brazil discuss higher taxation without putting the regulated system at a disadvantage.
“Brazil must decide whether it wants a competitive, regulated market — or a fiscal battleground that ultimately empowers the very operators it is trying to eliminate.”
