Lira Urges Crackdown on Illegal Betting Before Raising Taxes on Regulated Operators

Former Speaker of the House Arthur Lira has called on Brazil’s Federal Government to focus on combating illegal betting operations before pursuing higher taxes on licensed companies.

Speaking to journalists during an event in São Paulo, Lira said that betting is “inevitable” in Brazil and argued that prohibition is not an effective approach to managing the industry.

The congressman emphasized that authorities should prioritize enforcement against unlicensed betting platforms, which he said often evade taxes and facilitate money laundering through fintech intermediaries. According to Lira, it would be unfair to impose additional taxes on companies that comply with regulations while “half the sector operates illegally without regulatory oversight or tax contributions.”

Lira’s remarks come shortly after the National Congress rejected Provisional Measure 1,303, which would have raised the tax rate on betting company profits from 12% to 18%. The government is also considering further proposals that could see rates climb to as high as 24%.

He cautioned that increasing taxes on legitimate operators while illegal sites continue to thrive creates an unbalanced market. “Gambling is inevitable in Brazil,” Lira said, adding that attempts to suppress the activity would simply drive consumers toward unregulated and untaxed platforms.

The former Speaker argued that a more pragmatic policy would involve strengthening enforcement and regulation of existing operators rather than seeking to eliminate betting altogether. He noted that citizens would continue gambling regardless of government measures, underscoring the need for a controlled and fair market.

Lira made his comments during an event celebrating the events sector in São Paulo, where he was honored for his role in securing the Perse program — a tax relief initiative that supported the industry through the COVID-19 pandemic and is set to conclude in 2025.

His statements arrive amid an ongoing debate over betting taxation in Brazil, as the nation’s gambling sector undergoes major regulatory shifts. Recent analyses indicate that unlicensed operators have captured a significant share of the market, underscoring the enforcement challenges Lira referenced and reinforcing his call for a crackdown on illegal platforms before any new tax hikes are implemented.

By fLEXI tEAM