Brazil Betting Sector Backs Economic and Social Benefits

Representatives from Brazil’s regulated gambling industry have highlighted the sector’s economic, social and institutional contributions as lawmakers continue debating gambling-related legislation. Their comments come as Congress reviews proposals concerning industry regulation, taxation and the allocation of public funding.

Among those contributing to the discussion were 1PRA1 Chief Marketing Officer Tiago Grecco, Paag CEO João Fraga, EBAC Director of Knowledge Cristiano Costa and digital creator Daniel Fortune, who advocates for responsible gambling.

Betting Revenue Seen as Support for Public Institutions

One of the key topics discussed was how betting tax revenue should be allocated to public institutions.

Under Provisional Measure No. 1,348/2026, recently approved by the Brazilian Senate, the portion of betting revenue directed to the Federal Police Activities Equipment and Operations Fund (Funapol) will gradually increase, reaching 3% by 2028.

Grecco described the measure as an important development for public administration, stating that it will provide strategic support and contribute to strengthening the Federal Police.

He also argued that the regulated betting industry contributes more than tax income by creating jobs, supporting sports and generating broader economic activity across Brazil.

Industry Points to Employment and Social Contributions

Paag CEO João Fraga said the regulated betting market has become a significant source of employment since regulation was introduced. According to him, the sector has created more than 10,000 direct jobs and 5,500 indirect jobs, driven by the expansion of licensed operators and service providers.

Meanwhile, another proposal approved by the Committee for the Rights of Persons with Disabilities in Brazil’s Chamber of Deputies would allocate 10% of betting tax revenue to the National Secretariat for the Rights of Persons with Disabilities, which operates under the Ministry of Human Rights and Citizenship.

Bernardo Cavalcanti Freire, legal consultant for the National Association of Gaming and Lotteries (ANJL) and partner at Betlaw, said these initiatives demonstrate the industry's broader role within the Brazilian economy.

He noted that the sector remains one of the country's most heavily taxed industries while also contributing to education, sports and cultural activities such as Carnival.

Responsible Gambling Remains a Priority

Alongside economic benefits, industry representatives stressed that responsible gambling should remain a core element of Brazil's regulated betting market.

Daniel Fortune emphasized the importance of directing consumers toward licensed operators instead of illegal platforms, arguing that regulated operators offer supervision and player protection mechanisms unavailable in the illegal market.

Cristiano Costa echoed that view, saying sustainable industry growth depends on continued investment in responsible gambling measures rather than economic expansion alone.

He identified player education, self-control tools and accessible support services as essential components of effective responsible gambling policies.

Focus on Sustainable Market Development

The comments reflect the broader discussion surrounding Brazil's evolving gambling market. Industry participants argued that the regulated sector can deliver tax revenue, employment opportunities and funding for public initiatives while maintaining strong consumer protection standards.

As lawmakers continue reviewing current and future gambling legislation, the debate remains focused on balancing economic development with responsible gambling measures and effective regulatory oversight.