Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), believes the first year of betting regulation in Brazil was a success, despite mounting pressure and challenges.
“The first year of the regulated betting market in Brazil was challenging but absolutely fundamental for the consolidation of the sector,” he tells iGB.
Brazil celebrated the anniversary of its first year as a regulated online market on 1 January. During the first 12 months over 80 operators were granted online operating licences, and the latest figures from the Federal Revenue Service show the market generated nearly BRL9 billion ($1.7 billion) in tax revenue in its first 11 months. Full-year data is still to come.
But the market faced several setbacks and the licensed sector entered 2026 with a gambling tax rise on the way, as well as potential new restrictions on advertising.
Despite lingering challenges, Lemos Jorge insists the first year was “absolutely fundamental” for the licensed sector’s development and future consolidation.
“From the beginning, our work was concentrated on two priority areas: combatting the illegal betting market and resisting proposals for excessive taxation that could compromise the sustainability of the regulated model,” Lemos Jorge tells iGB.
“Our actions have always been guided by institutional dialogue, respect for authorities, and a commitment to Brazil’s economic development.”
Second-year success reliant on three pillars
In Lemos Jorge’s view, the Brazilian market’s status as a success or failure in its second year will come down to three key aspects.
The first of these, regulatory stability, faced numerous challenges in 2025.
A number of attempts were made by the government to increase the tax burden, and the licensed sector will see its gaming tax rate increased to 13% later this year, before rising to 14% in 2027 and 15% from 2028 onwards.
Additional ad restrictions are also seemingly on the way, with the Senate approving a number of new measures in May 2025, including watersheds and a ban on gambling ads during live sporting broadcasts. It’s not yet clear when this bill will take its next step.
The second of Lemos Jorge’s pillars, a sustainable economic environment for licensed companies, has been rocked by the recent announcement of a gradual tax rise.
Additionally, the Senate plenary has approved a 15% tax on player deposits, with a vote on the progression of the bill expected in early 2026.
“Initiatives to significantly increase the sector’s tax burden create a scenario that directly compromises the economic sustainability of companies operating in the regulated market,” says Lemos Jorge.
Social welfare betting ban complicating the fight
The third pillar, and perhaps the most pressing, is whether stakeholders in the licensed industry can effectively combat the illegal market.
Many of the current estimates state illegal operators account for between 41% and 51% of the total market.
The issue has been complicated further by a ban on betting by social welfare beneficiaries, which was formally announced in October last year.
Lemos Jorge points to data from an ANJL-commissioned study, released in late 2025, that warned 45% of social welfare beneficiaries plan to migrate to the illegal market if the ban is maintained.
In Lemos Jorge’s view, this “reinforces the importance of public policies based on evidence” rather than “simplistic solutions”.
Illegal betting a constantly moving target
Across the globe, gambling regulators are constantly working to combat illegal operators who keep adapting to stay one step ahead.
This is no different in Brazil, Lemos Jorge explains.
“Combatting the illegal betting market is a permanent challenge,” Lemos Jorge explains. “The clandestine industry operates with a high degree of technological sophistication and adapts very quickly, which prevents any definitive assessment of whether ‘enough’ has been done.
“What works today may cease to be effective tomorrow. Therefore, this confrontation needs to be continuous, coordinated and dynamic.”
He does note, however, that considerable progress has been made, particularly via the publication of Normative Ordinance No 566, which prohibits banks and payment institutions in Brazil from facilitating illegal betting transactions.
“In practice, this measure directly strikes at the heart of the illegal market,” Lemos Jorge adds. “Without access to the banking system and payment methods, illegal websites are prevented from receiving funds from bettors and making payments, which significantly reduces their operational capacity.”
Plinio Lemos Jorge believes Brazil’s inaugural year of licensed betting market was a success, proving critical for future consolidation within the sector.