Rio de Janeiro, Mar 14: Brazil’s National Association of Games and Lotteries (ANJL) has expressed concern over potential government plans to tighten regulations on legal online betting platforms, warning that stricter measures could encourage illegal gambling and reduce tax revenues.
The industry body, which represents licensed operators in Brazil’s regulated sports betting and lottery sector, said that major changes to the current regulatory framework could weaken consumer protections and undermine the legal market.
ANJL said excessive restrictions may drive users toward unregulated platforms that operate outside government oversight and lack safeguards against fraud, addiction and underage gambling.
According to estimates from Brazil’s Ministry of Finance, such a shift could lead to tax losses of up to BRL 80 billion (around USD 15 billion) over the next five years if the legal betting market contracts.
The association said reduced revenue could affect funding for several public programmes, including security initiatives proposed under PEC 18/2025, a constitutional amendment aimed at strengthening Brazil’s federal police structure and integrating security forces across the country.
Lower tax collections could also impact financing for anti-organised crime units and municipal security programmes, it added.ANJL further cautioned that significant restrictions or a potential ban on licensed betting operations could trigger legal disputes with companies that have already invested heavily in the sector.
Licensed operators have collectively paid about BRL 2.6 billion (approximately USD 496 million) in licensing fees, and companies could seek compensation if policy changes undermine the stability of the market, the group said.
Brazil’s regulated betting industry has grown rapidly in recent years and is considered one of the largest in Latin America.
Market estimates suggest the sector generated about USD 1.19 billion in revenue in 2024 and could expand to around USD 1.87 billion by 2030, reflecting steady growth.The association said a balanced regulatory framework is essential to protect consumers while ensuring that the legal market remains competitive and capable of contributing to government revenues.
