Brazil’s gambling landscape is undergoing a whirlwind of change as government officials, banks, digital platforms, and industry leaders all stake their claims in a sector that’s booming—with both promise and controversy. In just the past week, a flurry of new policies, partnerships, and proposals have emerged, signaling that the country’s online gaming and betting market is now at the center of national debate and global attention.
On October 30, 2025, President Luiz Inácio Lula da Silva’s administration took a bold step by intensifying efforts to tax Brazil’s rapidly expanding online gambling sector. Finance Minister Fernando Haddad, under the banner of the “billionaires, banks and bets” agenda, set an ambitious target: R$35 billion (€6.2 billion) in new revenue through levies on companies thriving in the country’s betting boom. The move is part of a broader strategy to bolster government coffers ahead of the 2026 national budget, as reported by multiple outlets, including BBC News Brasil and Investidor10.
This push comes as the online gambling and lottery market in Brazil continues to shatter records. Regulus Partners, cited by BBC News Brasil, estimates that the sector will bring in approximately R$22 billion in revenue in 2025 alone. Government receipts have already swelled, with R$6.8 billion collected from betting firms in just the first three quarters of the year. The sector’s rapid growth is attracting not only international operators but also some of Brazil’s most prominent financial institutions.
Three listed banks—Banese (BGIP4), Banestes (BEES3), and BRB (BSLI4)—are now entering the fray. Banese, for example, established Lotese (Loterias de Sergipe) in May 2025, offering more than 600 games ranging from online sports betting to scratch cards. The bank owns 49.9% of the venture, which was granted a 20-year concession, and has pledged to direct 5% of total lottery revenues to the Sergipe state government. The remaining net revenues are divided among social inclusion (35%), culture (25%), sport (25%), and environmental programs (15%). "The money raised and directed to the government of Sergipe will remain in the state, to be invested in development and quality of life for our people," Banese CEO Marco Antônio Queiroz told BNL Data.
Banestes is expected to launch its own lottery business by the end of 2025, having selected the World Lottery Consortium as its strategic partner after a rigorous tender process. Meanwhile, BRB’s ambitions were temporarily shelved after a probe by the Procuradoria-Geral da República into its agreement with Santa Casa de Misericórdia de Lisboa. Caixa Econômica Federal, the national lottery provider, is also preparing to enter the market with its Bet da Caixa brand by November 2025 and hopes to generate R$2.5 billion in revenue in 2026.
The sector’s explosive growth has not gone unnoticed by regulators and politicians, who are increasingly concerned about the social impact of gambling. President Lula da Silva, in October 2024, voiced his worries: "Lots of people are going into debt, spending what they don’t have. We consider it an issue of dependency." Calls for tighter regulation have grown louder, reflecting a delicate balancing act between economic opportunity and social responsibility.
This tension is playing out in the legislative arena as well. On October 29, 2025, lawmakers introduced bill PL 5,076/2025, which proposes to double Brazil’s gambling tax rate from 12% to a staggering 24% of gross gaming revenue (GGR). The move comes after an earlier, unsuccessful attempt to raise the rate to 18%. Industry experts are sounding the alarm. Elvis Lourenço, managing partner at EX7 Partners, told iGB, "24% is insane. It will collapse the market." He argued that even a rate between 15% and 18% would be more sustainable, echoing earlier policy debates.
Operators already face a complex web of taxes: a 12% GGR tax, a 9.25% PIS/Cofins levy, municipal taxes up to 5%, and a 34% corporate income and social contribution tax on profits. Industry representatives warn that piling on additional taxes could stifle growth and drive players into the unregulated black market, which, according to Lourenço, accounts for more than 50% of Brazil’s total betting revenue. "They are targeting to increase the taxes but they are not targeting to combat illegal gambling. So you have more than 50% in the black market and they’re doing nothing to get this money that is circling through. Guys, let’s try to get some money from here [illegal gambling]. If we can lower 50% to 30%, well it’s done," he said, calling for more effective enforcement and a fairer distribution of revenues to support public sectors like health and education.
As the debate rages, the industry is also seeing a surge in celebrity-driven marketing. On October 30, 2025, Brazilian iGaming operator PlayBet announced comedian Marcelinho Jhonson as its new brand ambassador. Jhonson, who boasts nearly 4 million followers, will present promotional content, behind-the-scenes material, and messages about responsible gaming. "I feel like I’ve really made it now that I’m part of the PlayBet team," Jhonson said. "Especially because I’m working alongside such an amazing group of people who are committed to sharing real information with the public. I’m sure this will be a very successful partnership!" PlayBet’s chief marketing officer Camila Silva added that Jhonson perfectly embodies the company’s spirit of entertainment and relatability.
While Brazil is grappling with how to manage its gambling boom, global digital platforms are also tightening their rules. YouTube announced that, starting November 17, 2025, it will implement new policies expanding age restrictions for videos depicting graphic violence in video games and tightening rules regarding online gaming. The update includes age restrictions on content from social casinos, even those with no real money betting, to prevent youth exposure to gambling environments. This builds on a March 2025 ban preventing creators from mentioning or displaying unauthorized gambling services. YouTube explained that the changes reflect a global movement to balance creative freedom and digital safety, especially as the visual fidelity of modern games increasingly blurs the line between fiction and reality.
As lawmakers weigh the timing of a vote on the proposed tax bill, industry leaders are advocating for a negotiated compromise that supports both market sustainability and government interests. The outcome will determine whether Brazil’s gambling sector can maintain its remarkable growth while addressing mounting concerns over regulation, social impact, and the specter of illegal betting.
The coming months are set to be pivotal for Brazil’s gaming and gambling industry, as the nation stands at a crossroads—torn between fiscal ambition, regulatory caution, and the promise of a digital entertainment revolution.
