Abrajogo discusses tax reform impact with Brazil's betting regulator

The Brazilian Association of Legalized Gaming and Betting Companies (Abrajogo) has met with representatives from the Secretariat of Prizes and Bets to discuss Brazil's tax reform.

The group particularly brought how the implementation of the Selective Tax could affect the betting and online gaming sector. 

Abrajogo was represented by its director of Institutional and Government Relations, Ana Bárbara Costa Teixeira, and legal director Ana Helena Karnas Hoefel Pamplona, with representatives from the International Gaming Association (Aigaming) also attending.

Among the key points raised was the need for systemic coherence in applying the new taxes and an analysis that accounts for the overall tax burden on licensed operators. Abrajogo argued the new tax system's design should preserve the regulated market's economic sustainability and its ability to compete with operators acting outside the law, framing balanced taxation as a channeling tool: excessive taxes on the formal market, the association said, risk reducing licensed operators' competitiveness and pushing consumers toward illegal platforms, undermining regulation's core goals around bettor protection, integrity, oversight and tax collection.

SPA representatives reportedly showed awareness of the tax issue's relevance and its potential impact on channeling activity toward the regulated market and noted the Secretariat's ongoing dialogue with Brazil's Federal Revenue Service to ensure tax rules reflect the sector's operational realities.

"The regulators showed they are aware of the importance and impact of the tax issue on channeling toward the regulated market,” said Pamplona.

“They also signaled they are working with the Federal Revenue Service so regulations reflect the sector's operational reality."

Separately, Abrajogo criticized the absence of regulated-sector representatives from a recent Federal Government meeting on the societal impact of online betting.