With one month to go before the start of the regulated iGaming environment in Brazil, the industry is highly anticipative, waiting for this new milestone for what will be the largest market in Latin America and the third or fourth globally. In this scenario, the National Association of Games and Lotteries (ANJL), representing some of the main players, points out that the sector should yield more than R$ 20 billion in taxes and at least 60,000 jobs by 2025.
The top 5 benefits for the country:
- Collection of taxes and fees to be converted for society: ANJL estimates that in 2025, legalized betting houses will allow public coffers to collect more than R$ 20 billion in taxes and fees, including the grants for the federal license. Bets will have to pay the Union 12% of Gross Gaming Revenue (GGR). This rate, added to the traditional taxes that service companies pay, will result in a tax burden of about 36%.
- Job creation: Contrary to what opponents of the market say, there will indeed be job creation in the country with the installation of legalized bets. The association estimates that at least 60,000 positions will be created, both direct and indirect. This is because the activities of the bets impact a product and service chain, in sectors such as entertainment, advertising, information technology, law, compliance, and media.
- Transparent and integral market: Starting January 1st, only companies with the domain “bet.br” will operate legally in Brazil. Thus, finally, the bettor will know immediately if they are enjoying themselves on a serious, regulated site that respects their rights, or if they are on an illegal platform, which will bring serious financial risks and health risks.
- Security for the bettor and protection for minors: Unfortunately, without regulation, the country was flooded by clandestine betting houses, which did not honor payments to bettors and allowed access to children and adolescents.
Under regulation, the bettor will have the security of not being a victim of scams, as the entire operation will be permanently monitored by the regulatory power. In addition, the youth will not be able to access the sites, as they will be prevented through the implementation of tools, including facial recognition.
- Benefits to mental and financial health: Only the regulated market cares about the mental and financial health of the bettor. As provided by Law 14.790/2023, part of the resources paid by the bets will be allocated to the Ministry of Health, for the promotion of public policies for the prevention and combat of gambling addiction.
In addition, the legislation provides for rigorous mechanisms for the exclusion, by the legalized bets, of bettors who are developing compulsive behavior. These measures are complemented by voluntary initiatives from ANJL and various betting houses of psychological support programs.
The top 5 challenges for the country:
- Effective blocking of illegal sites: As recognized by Anatel itself, Brazil still does not have effective mechanisms for blocking illegal platforms, which seriously risks the effectiveness of the regulated market. ANJL assesses that a task force involving various regulatory bodies will be necessary to combat these sites, so that bettors do not access them and are exposed to various inherent risks.
- Excessive taxation: Still under discussion in the National Congress, the Selective Tax, provided by the current Tax Reform project, has the potential to drive operators away even after the start of regulation. International experience shows that high tax burdens result in low channeling of bettors to the legal market. In other words, the result is the expansion of clandestine platforms, which do not pay taxes and promise higher gains. All outside the law.
- Prohibition of responsible advertising: Initiatives in the National Congress still try to completely ban advertising done by betting houses. In this case too, examples from other countries that implemented such a measure show that the main consequence is the encouragement to use illegal platforms. Responsible advertising is what differentiates serious, legalized betting houses from those that are not. Without it, the bettor is even more exposed to harmful actions to their health and wallet.
- Manipulation of results: If there is no effective blocking of illegal operators, Brazil will continue to be exposed to cases of manipulation of sports event results, where only criminal groups and co-opted athletes profit. Only legalized betting houses are committed to the fight against manipulation, including through partnerships with international entities for sports monitoring and integrity.
- Public awareness: Betting is not an investment nor an extra source of income. This is the main message that Brazil needs to continue passing to the population. This will only be possible through the engagement of the industry itself and the public power, in order to discourage any behavior of bettors that deviates from the standard, that is, from the act of betting consciously, moderately, and only as a form of entertainment.
Launched in March 2023, the National Association of Games and Lotteries (ANJL) defends the interests of its members, the sector, and responsible and integral gaming, always guided by the encouragement of sports, the safety of bets, and the contribution to the economic development of the country.
Among the members are galera.bet/Playtech, Big Brazil, F12, PagBet, Betnacional, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, Z.ro Bank, Propane, Paag, Clear Sale, BetBox tv, StarsPay, 1xBet, PG Soft, Jogalimpo, Oddfair, and Responsa.
Source: GMB
