The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have signed an agreement in São Paulo, part of efforts to defend Brazil’s regulated betting industry. This initiative was led by Plínio Lemos Jorge, president of ANJL, and Fernando Vieira, president of IBJR.

The move follows a proposed increase in the tax rate on fixed-odds betting from 12% to 18%. However, industry leaders argue that this measure could push the total tax burden to more than 50%, placing legal operators at a major disadvantage. The partnership signals a united front by the country’s most prominent regulatory entities.

Legal Operators Warn of Sector Instability

The betting sector projects that authorized companies will generate over R$4 billion in tax revenue in 2025. This signifies a strong contribution to public funds, especially the health and sports sectors. However, the proposed tax hike might destabilize the market’s growth.

In an official statement, ANJL said the new tax measure would affect the sustainability of legal companies. Many of these businesses have invested R$30 million each in licensing, complying with Brazil’s regulatory structure since its introduction in January 2025.

Risks of Investment Cuts and Job Losses

ANJL has outlined several risks tied to the tax hike, including the potential withdrawal of legal operators, reduced investments, and job elimination.

“The possible enactment of a Provisional Measure raising the tax rate for the fixed-odds betting sector from 12% to 18%, resulting in a total tax burden of over 50%, seriously compromises the sustainability of the legally constituted sector,” the statement reads.

ANJL president Plínio Lemos Jorge also said, “The proposal, in practice, penalizes those who operate legally and favors informality. It compromises not only tax collection, but also public policies financed by the sector.”

Call for Balanced and Predictable Regulation

ANJL represents about 25 of the main authorised betting operators in Brazil. The association has opened talks with the federal government, calling for a fair and structured regulatory environment.

“We are willing to engage in responsible and qualified institutional dialogue with the Federal Government, It is essential that any regulatory change be constructed with balance and respect for the regulatory environment that is being consolidated in Brazil”, Jorge stated.

As debate over the proposed tax continues, Brazil’s licensed betting operators urge authorities to protect the legal market gains, ensuring the sector remains sustainable.