Brazil has introduced tougher laws to fight illegal gambling. A new amendment to Law No. 14,790 now defines the promotion of unlicensed gambling, including through digital ads, as a serious offence. This includes ads on Google, social media, websites, and video platforms. The update is a direct response to the rise of unauthorised online betting, which has become a growing concern for regulators.
Tech companies must cooperate with authorities
Internet service providers, social media platforms, and ad networks are now required to set up official contact channels with Brazil’s federal agencies. This will allow faster communication between tech platforms and government regulators when illegal betting content needs to be flagged or removed. These platforms, including those that run Google Ads online gambling campaigns, must respond quickly to takedown requests or face penalties.
New taxes worry legal operators
The government also raised taxes on legal betting companies, including those running casino PPC and gambling PPC campaigns. The industry argues that these sudden changes come too soon after betting was first legalised and regulated.
The Brazilian Institute of Responsible Gaming (IBJR) says operators have already spent over R$2.3 billion on license fees and compliance. With these new tax rates, legal operators fear they may lose ground to unregulated sites that don’t pay taxes or follow the rules.
Industry fights back against new rules
The IBJR has announced plans to challenge the tax hikes in court. They believe that instead of taxing regulated platforms more heavily, the government should focus on shutting down illegal websites. There is concern that overregulation will drive users back to unlicensed platforms, harming the legal market and reducing future tax revenue.
Funds to support public services
Despite criticism, the government plans to use the extra tax income to fund health programs and campaigns against illegal gambling. Still, analysts warn that overburdening legal companies could do more harm than good, with an estimated R$2 billion in revenue lost annually to illegal betting platforms. The debate continues as both sides push for long-term solutions.
