May 25, 2023 3 min read


IBJR Criticizes Delays and Uncertainties in Betting Regulation

The Brazilian Institute of Responsible Gaming warned unsustainable market may push some consumers to illegal operators and criticized delays and uncertainties involving regulation of sports betting

It was earlier this year when global sports betting companies forged a new entity in Brazil called the Brazilian Institute of Responsible Gaming (IBJR). One of the prime objectives of the new organization is to advocate for the development of a fair market in the country while ensuring protection for the consumers. Now, amid uncertainty regarding the sports betting market in Brazil, the IBJR criticized lawmakers in the country and warned that such events can push players to illegal gambling operators, a report released by SBC Americas reveals.

In a letter to lawmakers and regulators, the IBJR acknowledged that the regulation of sports betting is the “right answer to face the social and economic challenges of this industry.” However, it said that such regulation needs to be robust and sustainable, following markets around the globe that have shown success in offering the activity for many years.

The Institute of Responsible Gaming acknowledged that while the process of regulation is getting closer to finalizing, there are still uncertainties outstanding. This, according to IBJR, means that companies within the sector may also be uncertain whether or not to pursue options for a license in Brazil, given that there are currently no guarantees that the competition will be fair or that the market will be sustainable. Moreover, IBJR warned that although the market in the country can be attractive, this cannot be the case “at any cost.”

As the regulatory process enters its final stages, we are still not convinced that decision-makers understand that legitimate institutional investors will not seek licenses in Brazil without the guarantee of sustainable and fair regulation, which enables fair competition between operators,

wrote the Brazilian Institute of Responsible Gaming

Pushing Users to the Unregulated Gambling Market

Focusing on recent events, the IBJR outlined that a provisional measure discussed at the end of last month and its plan to become a law was another “sudden change of course in relation to the plan that the Government Federal had communicated to the market.” The organization explained that this creates further delays and results in uncertainty for the IBJR and sports betting operators.

According to the IBJR, there are two issues that may ultimately impact the sports betting market in the country. One of them involves the tax rate, which is expected to be at 28%. The other one is the exponentially high proposed license fee. Those two issues, IBJR warned, may push some consumers to illegal gambling operators, a market that doesn’t pay taxes but offers a variety of appealing products.


William Velichkov is a research-driven writer. His strengths lie in ensuring factual accuracy, vetting government documentation and reaching out to regulators and other officials. He is particularly fond of financial reporting, the sports betting industry, B2B partnerships and esports betting developments. William is a strong asset to the GamblingNews team as he adds a bedrock to our reporting.

Leave a Reply

Your email address will not be published. Required fields are marked *