Brazil’s finance minister Dario Durigan called for tougher regulations to be placed on betting as the country continues to establish itself in what is still a new legal market. His main focus is not only taxation. Mr Durigan also mentioned the need to regulate advertising, the potential damage to consumers, and the problem of unrestricted growth of betting firms.
Tax and Advertising Move Up the Agenda
The minister compared bets with cigarettes, noting that both can bring about harm to people, and need to be regulated by stricter measures. In reality, this may imply additional tax pressure on licensed companies and tighter limits on betting advertising.
Moreover, Durigan believes that betting companies have already entered the Brazilian economy. Some industries are being funded by the gambling sector, especially through sponsoring and advertising. This way, Durigan views tax payments as inevitable for companies operating in the Brazilian market.
The finance minister denied that the government is interested in the sector merely as a revenue source. Durigan said that taxation should take into account the operation of gambling companies within the country and their benefit from local demand.
Why Brazil Is Avoiding a Full Ban
Durigan’s observations also explain the cautious approach of the Brazilian authorities toward implementing the prohibition. President Luiz Inácio Lula da Silva has previously spoken in favor of banning bets. On the other hand, Durigan has held a different opinion. He warned that a blanket ban would drive people to illegal companies, rather than decrease gambling activity.
This issue is crucial for the newly formed licensed gambling sector of Brazil. The country’s regulated fixed-odds betting market formally opened in January 2025. If legal operators face pressure while illegal sites remain active, the new framework might lose some of its essence.
In addition, the government tries to counter criticism over transparency. According to Durigan, the Finance Ministry plans to publish details from completed betting authorisation files. Personal information is to be deleted from the documents beforehand.
Such a step follows questions about access to license-related data. The ministry claimed that it wanted to disclose this information in an organized manner, rather than provide it individually.
What Operators Should Watch Next
The next points of pressure are likely to involve tax laws, advertising policies, and enforcement against unlicensed operators. For licensed companies, the message is clear. Brazil is leaving the market wide open, but the price of operation may become higher. Brands that rely heavily on mass advertising should also be ready for a reduced environment.
The wider lesson is that Brazil is moving from market opening to market correction. The government has accepted that betting now has economic weight. It is also making clear that visibility, tax payments, and consumer-risk controls will be part of the price for staying in the regulated sector.
