The Brazilian government is intensifying its crackdown on the unregulated gambling sector as new data reveals the staggering scale of the black market.
Recent reports indicate that illegal betting currently accounts for approximately 40% to 51% of the total market, a figure that industry experts warn could climb to 72% by 2026 if regulatory missteps continue.
The Tax Controversy
A major point of contention is the proposed “CIDE-Bets” tax, a 15% levy on player deposits approved by the Senate as part of the Antifaction Bill.
The Brazilian Institute of Responsible Gaming (IBJR) has fiercely criticized the measure, arguing that taxing deposits effectively devalues a player’s money on licensed sites compared to black market ones. They warn this will drive bettors straight to the black market, which already handles billions in wagers annually.
Regulatory Response
In response to the growing illegal sector, the Ministry of Finance has begun targeting the financial ecosystem, prohibiting payment institutions from processing transactions for unauthorized sites. With the regulated market set to fully launch in 2025, authorities are under pressure to balance fiscal goals with the need to channel players toward safe, licensed operators.
