The Brazilian Institute of Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL) signed an agreement on Thursday, June 12, 2025. The aim is to protect the country’s legal betting market and facilitate growth in the future. Leaders of both entities signed the agreement in São Paulo.
Key Takeaways from the ANJL-IBJR Agreement
- The two organisations collectively represent 95% of Brazil’s regulated gambling market. Therefore, this partnership will benefit the domestic industry in general.
- The merger occurred after the government made a controversial decision to increase taxes on winnings from virtual betting from 12% to 18%.
- The proposed tax increase threatens the financial stability of licensed operators, as they are projected to raise over R$4 billion in taxes in 2025.
Organisations Collaborate to Protect Mutual Interests
The ANJL and the IBJR collectively represent 95% of Brazil’s regulated gambling industry. The partnership was necessitated by the government’s controversial decision to raise taxes on winnings from virtual bets from 12% to 18%. This puts the segment at risk of being overtaxed.
Regulated companies are expected to generate over R$4 billion in taxes during 2025. This figure represents a huge portion of Brazil’s state coffers. However, this drastic tax increase can jeopardise the financial stability of Brazil’s regulated gambling sector. Speaking about the partnership, Plínio Lemos Jorge, President of the ANJL, said:
We have a common agenda, which is the viability of the regulated betting market. We are facing a major challenge, because overtaxation compromises the activity of the sector and drives the growth of illegal sites, which already represent the vast majority of bets operating in the country.
The government published the provisional measure on Wednesday, June 11. The two organisations plan to collaborate in a bid to represent licensed gambling companies. Additionally, they will also demonstrate the risks of the government’s increased tax policy on the sector.
Minister of Finance, Fernando Haddad, stressed on the importance of reassessing the needs of Brazil’s betting segment as it prepares for a new phase of sports betting regulations. Meanwhile, both organisations are looking for alternatives to maintain the competitiveness of the sector.
Brazil’s Betting Reform a First for LATAM Markets
As illegal gambling continues in Latin America, Brazil has taken several active measures to protect domestic consumers from the side effects of unregulated gambling operations. Notable steps include the decision to place a blanket ban on sports betting promotions, among other things.
Operators can no longer hire influencers, celebrities, athletes, or artists to promote their services. The updated legislation also allows limited advertising by sports teams and stadiums. All forms of sexist, misogynistic, and discriminatory marketing content are also banned under the new statutes.
Brazil’s new regulatory framework is expected to revolutionise the way iGaming brands operate in Latin America. Anticipating the current shifts in his comments for the Ace Alliance 2025 iGaming Trendbook, Karl von Brockdorff, CMO at Wicked Games, has stated that LATAM, with Brazil at the forefront, is expected to experience significant growth due to regulatory advancements. Some of Brazil’s notable regulatory updates include a focus on responsible gambling, the introduction of self-exclusion tools, and monitoring betting volumes.
All of these measures are designed to protect Brazilian players from the risks associated with problem gambling. The government is also stepping up efforts to educate the masses and investing in healthcare infrastructure to support people suffering from problem gambling behaviour.