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25 October 2025

Brazil Faces High Stakes With Betting Tax Reforms

As MC Games welcomes new influencers and market data emerges, Brazil’s online betting sector braces for sweeping tax changes that could reshape the industry’s future.

Brazil’s online betting industry is facing a pivotal moment as new influencers join the scene, fresh market data emerges, and lawmakers consider sweeping tax reforms that could reshape the sector’s future. In a week marked by announcements, reports, and heated policy debates, the stakes for operators, consumers, and regulators have rarely been higher.

On October 24, 2025, MC Games, a prominent digital online betting and gaming platform licensed in Brazil, revealed that Natan Reuel and Samara Araújo—a dynamic duo from Rio Grande do Norte—had joined its team of influencers. The move underscores MC Games’ commitment to reaching Brazil’s young, digital-savvy audience. According to Camila Silva, CMO of MC Games, “We’re thrilled to have Natan and Samara as part of the MC Games family. They embody the energy, authenticity, and creativity we want to convey to Bet’s audience. They’ll be a duo that will truly represent MC at events.”

Reuel, with over 2.5 million followers, is known for his lighthearted and humorous takes on everyday life, while Araújo has carved out a leading role in beauty and lifestyle content. Together, they’re tasked with representing MC Games at events and leading coverage of various betting happenings—a sign of the growing importance of influencer marketing in the increasingly competitive Brazilian online gaming market.

MC Games isn’t just banking on star power. The company has built a strong presence on social media, particularly Instagram, and its blog stands out for providing exclusive information on responsible gambling. The platform aims to connect athletes and fans through special events and unique content, further cementing its reputation as a leader in Brazil’s regulated betting space.

This focus on responsible gaming and digital outreach comes at a time when the market is being closely scrutinized by analysts and regulators alike. On October 18, 2025, Gaming Intelligence published the latest Brazil Slot Intel report from Product Radars, offering a snapshot of the sector’s performance for week 42 of the year. While the full details are reserved for subscribers, the report’s release highlights the appetite for up-to-date data and insights in a market that’s evolving at breakneck speed.

But perhaps the most consequential development came on October 23, 2025, when the Brazilian Institute for Responsible Gaming (IBJR) released a new infographic in São Paulo. The document lays out the potential tax burden facing online betting operators if a series of legislative proposals—most notably Bill 5.076/2025—advance in Congress. The bill, which recently gained momentum after the Chamber of Deputies’ Finance and Taxation Committee approved a request for urgency, seeks to double the tax rate on Gross Gaming Revenue (GGR) from 12% to 24%.

GGR, or gross gaming revenue, is the amount wagered minus prizes paid out—a standard metric for taxation in regulated gaming markets. But the proposed hike isn’t the only headache for operators. Brazil’s broader Tax Reform, currently in the works, would introduce two new taxes: the Contribuição sobre Bens e Serviços (CBS) and the Imposto sobre Bens e Serviços (IBS), with a combined rate of 28%. If both the new GGR rate and these additional taxes are implemented, the total effective tax rate on betting consumption could skyrocket to 45.4%.

The IBJR’s infographic doesn’t mince words about the risks. According to the institute, this approach runs counter to international best practices, where moderate taxation has helped transition illegal betting into the regulated fold. In countries that kept taxes competitive, legal operators thrived, boosting long-term tax receipts and improving consumer protection. The IBJR points out that, as of September 2025, legal betting sites in Brazil have already generated R$6.85 billion in tax revenues. However, the illegal market remains vast, accounting for an estimated 51% of all betting activity and costing the government R$10.8 billion in lost revenue each year.

The stakes are clear: over-taxation could drive both operators and consumers back into the shadows. The IBJR cites a study by LCA Economic Consulting in partnership with Instituto Locomotiva, which found, “for every five percentage points of market formalization, Brazil could collect approximately R$1 billion in additional tax revenue.” The study argues that rather than overburdening companies already operating legally, the government should focus on shrinking the illegal market.

International examples bolster the IBJR’s case. In the Netherlands, a recent tax increase on betting led to a €200 million drop in tax revenue as operators and players shifted to unregulated options. Italy, meanwhile, saw a surge in illegal gambling after imposing tough advertising bans—an unintended consequence that worked against the goals of regulation.

With the sector undergoing official regulation and adapting to new legal and fiscal demands, the IBJR is urging policymakers to seek balance. The institute calls for open dialogue among lawmakers, regulators, and industry stakeholders to craft a tax strategy that encourages growth, fairness, and responsible gaming. “A sensible tax model, one that fosters compliance, competitiveness, and responsible gaming, is essential for the long-term sustainability of the industry,” the IBJR states.

Against this backdrop, the arrival of high-profile influencers like Natan Reuel and Samara Araújo takes on added significance. Their ability to engage audiences and promote responsible gaming could prove crucial as companies like MC Games navigate a landscape shaped by both opportunity and uncertainty. The platform’s efforts to connect athletes and fans, provide exclusive content, and champion industry best practices may well serve as a model for others as the market matures.

Meanwhile, the appetite for reliable data and analysis remains strong, as evidenced by the continued publication of market intelligence reports. For operators, investors, and policymakers alike, understanding the shifting sands of Brazil’s online betting sector is no longer a luxury—it’s a necessity.

As Brazil’s online gaming industry stands at this crossroads, the choices made in the coming months will determine whether the sector continues its rapid growth, delivers greater tax revenues, and protects consumers—or whether it risks driving business back underground. The outcome will depend on the ability of all parties to find common ground, foster innovation, and keep the focus on what matters most: a fair, transparent, and thriving market for all.