- Media
ANJL president reflects on first year of Brazil’s licensed betting market
The inaugural year of the Brazilian licensed betting market in action was challenging yet fundamental to the consolidation of the sector, National Betting Association of Games and Lotteries (ANJL) president Plínio Lemos Jorge has stated.
At the start of 2026, the first year of Brazil’s licensed betting market came to an end. During that year, over 80 operators had been granted online operating licenses, and figures from the Federal Revenue Service estimate that the market had generated nearly US$1.7 billion in tax revenue during its first 11 months in operation.
Although the market has faced some challenges, including potential upcoming ones such as a looming gambling tax rise and potential additional restrictions on advertising, Lemos Jorge, during an interview with iGB, described the market’s inaugural year as one which has been absolutely fundamental. He also commented that the work around the market has primarily been concentrated in two priority areas, those being combatting the illegal betting market, and resisting proposals for excessive taxation that could compromise the sustainability of the regulated model.
Three key aspects for the second year
Lemos Jorge said that in his view, whether the Brazilian market is considered a success or a failure in its second year will rely on three key aspects, those being regulatory stability, a sustainable economic environment for licensed companies, and whether stakeholders in the licensed industry can effectively combat the illegal market.
With regard to regulatory stability, the licensed sector is set to see its gaming tax rate be increased to 13% later in 2026, and then ultimately rise to 14% in 2027 and to 15% from 2028 and on.
As previously mentioned, additional advertising restrictions also seem to be anticipated by the market, as the Brazilian senate had approved new measures in May 2025 which included watersheds and a ban on gambling ads during live sports broadcasts. With that said, it is currently unclear when this bill is set to progress further.
On the matter of a sustainable economic environment for licensed companies, this aspect has been impacted by a gradual tax rise, as well as the senate plenary’s approval of a 15% tax on player deposits, with the bill expected to progress further through a vote in early 2026.
Lemos Jorge has commented that such initiatives to increase the sector’s tax burden in turn create a situation which directly compromises the economic stability of companies that are operating in the regulated market.
With regard to the third pillar of whether stakeholders in the licensed industry can effectively combat the illegal market, it has been reported that current estimates indicate that illegal operators account for around 41% to 51% of the total market, with the issue having been complicated further due to a ban announced in October 2025 on betting by social welfare beneficiaries.
Speaking on the ban, Lemos Jorge, referring to data from an ANJL-commissioned study which was released in late 2025, said that 45% of social welfare beneficiaries potentially intend to make use of the illegal market if the ban in question is maintained. He had commented that this scenario reinforces the importance of public policies based on evidence, rather than gravitating towards simplistic solutions.
Lemos Jorge has said that taxation has become one of the greatest threats to the sustainability of the Brazilian regulated betting environment, as he has made statements emphasising that excessive taxation would produce the opposite of the intended effect, ultimately encouraging bettors to migrate to illegal platforms, many of which he said are operated by criminal organisations with international reach, and in turn result in a reduction of revenue for companies which have operated in line with regulation.
Efforts against the illegal betting market
The ANJL president has stated that combatting the illegal betting market is a permanent challenge, with the clandestine industry operating at a high degree of technological sophistication and being able to adapt very quickly, making it very difficult to assess whether enough has been done. He commented that the effort against the illegal market needs to be a continuous, coordinated, and dynamic one, as what works in one moment may end up becoming ineffective in a short timeframe.
One initiative which Lemos Jorge believes has proven to be effective has been the publication of Normative Ordinance No. 556, which prohibits banks and payment institutions in Brazil from facilitating illegal betting transactions. Lemos Jorge has said that this measure directly strikes at the heart of the illegal market, as illegal websites are unable to receive funds from bettors as well as being unable to make payments without access to the banking system and to payment methods, in turn significantly reducing their operational capacity.
Stay ahead in leadership with the latest insights from industry experts. Subscribe today.
