Brazil Faces Tax Losses as Bettors Shun Legal Sites
The Essentials at a Glance
Despite new laws and enforcement efforts, many Brazilians still place bets on unlicensed gambling sites. A recent national survey shows 73% of bettors used such platforms in early 2025. Most of them struggle to identify which sites are legal. As a result, Brazil loses significant tax revenue and faces ongoing challenges in regulating its online betting market.
Unlicensed Platforms Still Dominate
Between April and May 2025, Instituto Locomotiva conducted a survey commissioned by IBJR (Brazilian Institute of Responsible Gaming) and LCA Consultoria. The results are striking: nearly three out of four bettors used unlicensed platforms. These sites operate outside the rules, offering services like anonymous betting, credit card funding (which is banned), and cryptocurrency transactions.
Estimates suggest that unlicensed operators make up 41% to 51% of Brazil’s online betting market. In just three months, this activity led to around $486 million in lost tax revenue. Projected annually, this could reach up to R$10.8 billion (about $1.8 billion).
Legal vs. Illegal: Confusion Among Users
A major issue is user confusion. Around 80% of respondents said they couldn’t tell if a site was government-approved. Legal betting platforms in Brazil must meet strict criteria under SPA (Secretaria de Prêmios e Apostas) regulations. These include:
– “.bet.br” domain
– Facial recognition for identity verification
– Deposits only via Pix (instant payment system) or debit
– Loss limits and self-exclusion options
Many users remain unaware of these requirements, making them easy targets for illegal operators.
You should read that too:
Government Response and Tax Concerns
To address the issue, Brazil increased the tax rate on legal betting operators from 12% to 18% in June 2025. However, IBJR President Fernando Vieira warns this move may backfire. With the upcoming Selective Tax, total tax pressure could approach 50%, potentially making legal operations financially unviable.
Need for Public Education and Enforcement
Renato Meirelles from Instituto Locomotiva emphasizes the importance of clear public messaging. Illegal platforms often exploit the lack of awareness among users, particularly those with lower income or education levels.
Since January 2025, authorities have taken down over 11,000 illegal domains. Still, enforcement alone isn’t enough. Stronger oversight, better public education, and tougher penalties are needed to protect users and support the legal market.
Our Assessment
Brazil’s online gambling market is growing fast, but regulation hasn’t kept pace. Most users still turn to unlicensed platforms, often without realizing it. While enforcement efforts are underway, public education and smarter regulation are essential. Raising taxes on legal operators may do more harm than good if it drives users further into the unregulated space. Clear rules, better communication, and practical enforcement could help shift the balance toward a safer, legal market.
Sources
– Instituto Locomotiva
– IBJR (Brazilian Institute of Responsible Gaming)
– LCA Consultoria
Disclaimer: This website is for informational purposes only and does not constitute legal advice. Winnings are not guaranteed. Gambling can be addictive. Only play where legal in your region and check your local laws. Please gamble responsibly. | 18+
- No wagering on rakeback or cashback rewards
- Unlimited deposits and withdrawals
- Advanced filtering and game sorting
- Binance Coin
- Bitcoin
- Bitcoin Cash
- Chainlink
- DAI Coin
- Dogecoin
- Ethereum
- Litecoin
- Polygon-Matic
- Ripple
- Shiba Inu
- Solana
- Tether
- Tron
- USD Coin
| Rakeback amount | Based on VIP level |
| VIP Levels | 8 |
| Rakeback offered | |
| Instant Rakeback: Earn a percentage back on every wager, starting from your very first bet. | |
| Daily Rakeback: Based on the previous day. | |
| Weekly Rakeback: From Thursday to Wednesday. | |
| Monthly Rakeback: Based on previous month. | |
| Wagering requirements | None |
| Bonus validity | Depending on rakeback |
- From the 4th level in the loyalty program, a weekly cashback of 10% is added.
- Fast crypto withdrawals
- No KYC required at sign-up
- Crash-game-first experience
- Binance Coin
- Bitcoin
- Bitcoin Cash
- Cardano
- DAI Coin
- Dogecoin
- Ethereum
- Litecoin
- Ripple
- Shiba Inu
- Solana
- Tether
- Toncoin
- Tron
- USD Coin
- MetaMask
- Telegram
- Trust Wallet
- WalletConnect
| Wagering requirements | 35x bonus |
| 10x winnings from free spins | |
| Minimum deposit | 20 USDT |
| Bonus validity | 5 days |
- While USDT is the default, other cryptocurrencies are also eligible for the bonus.
- Many wager-free bonus offers
- Crypto deposits without limits
- Support for 11+ cryptocurrencies
- Binance Coin
- Bitcoin
- Bitcoin Cash
- Cardano
- Dogecoin
- Ethereum
- Litecoin
- Ripple
- Solana
- Tether
- Tron
- USD Coin
- AstroPay
- Bank Transfer
- Flexepin
- Interac e-Transfer
- MiFinity
- MuchBetter
- Neosurf
- Skrill
- MetaMask
| Wagering requirements | None |
| Maximum cashback | No limit |
| Bonus validity | 14 days after receiving |
- Offer available for the first, second, or third crypto deposit.
- Cashback is calculated based on net crypto losses for the day of deposit.
- Cashback is credited daily for up to seven days after a qualifying deposit.
- Cashback is paid as real money with no wagering or upper cap.
