Brazil’s online betting industry moves to form national federation in the middle of tax dispute

Facing mounting challenges in engaging with the federal government over a proposed tax increase, Brazil’s online betting industry is mobilizing to form a unified federation modeled after the powerful banking lobby, Febraban. The move comes as the sector seeks a stronger collective voice to address growing regulatory pressures, including a controversial hike in taxes on online gambling.

While the federation has yet to be officially named, insiders have begun referring to the emerging body as “Febrabet.” The concept follows the structure of Febraban, Brazil’s influential banking federation, whose coordinated lobbying efforts have proven effective even among firms with divergent interests.

Industry representatives point to a recent Febraban meeting with Executive Secretary of the Ministry of Finance Dario Durigan as a case in point. In that meeting, the government expressed openness to revisiting a decree on the IOF (Financial Operations Tax), highlighting the potential impact of a unified voice.

The effort to form Febrabet is seen as a response to what many in the sector describe as fragmented and inefficient representation in Brasília. Currently, betting operators, technology providers, payment processors, and consultancies are split across multiple associations, complicating dialogue with the federal administration.

The lack of cohesion has become especially problematic in light of recent fiscal policy changes. The center of the controversy is a provisional measure submitted to Congress by Finance Minister Fernando Haddad, which proposes increasing the tax on online bets from 12% to 18%. 

This marks the first time that diverse actors within the legalized betting industry have moved in unison to publicly oppose a federal tax measure. Several prominent figures are already being considered for leadership and coordination roles within the proposed federation, according to local media reports.

These include Amilton Noble of Hebara Distribuidora de Produtos Lotéricos, Ana Bárbara Teixeira of Abrajogo, Ana Clara Barros of Aidiglot, Bárbara Teles of Stake, Hugo Baungartner of Esportes da Sorte, Leonardo Baptista of Pay4Fun, Magnho José of the Instituto de Jogos Legais (IJL), and Natália Nogues of Control F5.