Brazilian Senator Angelo Coronel (PSD–BA) has issued a strong warning against over-taxing the nation’s newly regulated betting industry, cautioning that higher rates could drive players back to illegal operators and undermine years of regulatory progress. During a Senate Economic Affairs Committee (CAE) session on November 4, Coronel rejected Senator Renan Calheiros’ proposal to double the tax on gross gaming revenue (GGR) from 12% to 24%, emphasizing that licensed operators already face complex tax burdens exceeding 50%.
Coronel pointed out that Brazil’s 81 licensed companies have collectively paid BRL 30 million in concession fees, in addition to corporate, social, and municipal taxes. He argued that punishing legal entities while ignoring unregulated platforms would only expand the black market, which already accounts for nearly half of all wagers placed in Brazil.
Drawing on international examples, Coronel highlighted how similar over-taxation in Germany and Portugal led to reduced participation in regulated markets. Meanwhile, Senator Soraya Thronicke (Podemos–MS) expressed contrasting views, insisting that betting companies must shoulder greater social responsibility and contribute more to public funds.
The postponed vote indicates the debate is far from over. As Brazil moves toward full implementation of its regulated betting framework, the final decision on taxation will determine the market’s long-term sustainability. The balance between fiscal policy and industry viability may shape not only Brazil’s gaming landscape but also Latin America’s future regulatory direction.
