In a speech given in Rio de Janeiro marking the 90th anniversary of Brazil’s minimum wage being implemented, President Lula Da Silva placed the sports betting industry in his crosshairs.
Indicating he would support the involvement by the Central Bank in regulating online betting sites, Da Silva also criticised the rapid growth of the sector, referring to it as an invasive element of Brazilian society.
Da Silva calls on more oversight
Representatives and ministers from some of Brazil’s biggest financial institutions were present at the ceremony, including President of the Central Bank, Gabriel Galípolo, and ministers Esther Dweck (Management and Innovation), Gleisi Hoffmann (Institutional Relations), and Marinho Luiz (Labor and Employment).
In his speech, Da Silva said: “For a long time, I heard the argument that casinos were prohibited. Casino gambling is a game of chance and cannot exist because the poor would spend their money there. Brazil could not even have the ‘jogo do bicho’. Now what happened? The casino entered our homes with this number of betting platforms that were created.”
“[Online betting] is taking over football, taking over advertising, taking over corruption in this country. Because you can see the work of the Central Bank, trying to make these people pay at least taxes”, he continued.
Sports betting in Brazil was made legal in January 2025 and has taken off in a big way. The famously sports-mad country was found in one report to have 25 million of its citizens as active gamblers, placing their bets legally. That equates to 12% of the adult population.
Lula Da Silva’s comments come at awkward time for industry
The endorsing of stricter oversight for the country’s betting industry will raise concerns among operators and investors. While regulators say increased scrutiny is aimed at protecting consumers and preventing illegal activity, industry insiders warn it could slow the rapid growth of Brazil’s sports betting and prediction market sector.
Stricter rules could limit the types of bets offered and increase compliance requirements, forcing companies to spend more on licensing, reporting, and security measures. Smaller operators, in particular, may struggle to meet the costs, while larger firms could pass the burden onto customers.
Analysts also say the move could stifle innovation in betting products, including emerging instruments like sports event contracts and other derivatives-style platforms. Uncertainty around how these products would be regulated may discourage international operators from expanding in Brazil.
The potential impact extends to users as well. New verification and reporting requirements could make betting less convenient, slowing participation and reducing overall market activity. As Brazil seeks to balance growth with oversight, the betting industry faces a period of regulatory uncertainty.
Phased gambling tax of 15% continues to cause controversy
A new law, agreed on in Brazil’s senate last month, continues to cause consternation in the betting sector in Brazil. The Antifaction Bill, which requires bettors to pay a 15% tax on player deposits, will likely drive up the prevalence of black market betting, according to experts.
The Brazilian Institute of Responsible Gaming (IBJR) said last month: “By taxing the bettor’s deposit at 15%, the state decrees that BRL100 is only worth BRL85 in companies that follow the law. In the black market, however, the same BRL100 is worth the full amount. This is a direct incentive to migrate to the illegal market.
“Furthermore, the measure is based on a non-existent financial premise. It claims to collect BRL30 billion annually from a formal market that currently generates around BRL36 billion. Therefore, it projects collecting in taxes almost equivalent to the entire revenue of the regulated sector, which is mathematically impossible and renders formal economic activity unviable.”
Brazil betting sector faces period of uncertainty, despite thriving
Industry observers say Brazil’s betting market now faces a period of significant uncertainty. While legalisation in 2025 opened the door for rapid growth, Da Silva’s calls for increased oversight and the newly implemented 15% deposit tax could slow expansion, raise operating costs, and push some bettors toward unregulated platforms.
Smaller operators may struggle to comply with stricter reporting and licensing requirements, while larger firms could pass costs onto users, potentially dampening participation. Emerging products like sports event contracts and derivative-style bets may face particular scrutiny, limiting innovation in the sector.
Analysts warn that unless the government balances regulation with market incentives, the country risks fostering a robust black market while discouraging legitimate operators and investors. For now, Brazil’s booming sports betting industry must navigate a delicate path between rapid growth and tighter government control.
