Brazil’s Superbet Chief criticizes proposed tax increase on betting sector, restrictions on social program beneficiaries

Alexandre Fonseca, CEO of betting operator Superbet, has spoken out against proposals to ban recipients of social welfare benefits from placing bets, arguing that such measures would create “second-class citizens” and risk deepening social divisions. In an interview with Folha, Fonseca also warned that abrupt tax hikes threaten the stability of Brazil’s regulated betting market while strengthening unlicensed operators.

Brazil’s fixed-odds betting sector, regulated for less than a year, is facing potential tax increases from 12% to 18% under a bill now in Congress. Fonseca said the measure would sharply raise costs for licensed companies already investing heavily in compliance and integrity safeguards. “No business can survive in such an unstable environment,” he said. “This weakens the regulated sector and strengthens the illegal one.”

The government’s push to restrict betting access for recipients of programs such as Bolsa Família, BPC, or unemployment aid follows concerns over misuse of public funds. Fonseca maintained that the industry supports blocking the use of benefit payments for gambling, alcohol, or tobacco, but opposes excluding individuals outright.

“When you restrict the beneficiary [...] you create a second-class citizen,” he argued. “Soon, you might need a ‘non-beneficiary’ card to buy alcohol. It’s a dangerous path.”

According to Fonseca, current payment systems make it possible to segregate benefit funds without barring recipients from participation entirely. He warned that a blanket prohibition could amount to “financial apartheid,” raising questions about fairness and personal autonomy.

Beyond taxation and access debates, match-fixing has emerged as a pressing challenge for the sector. Fonseca said the problem, once confined to lower-tier competitions, is now appearing in Brazil’s top-flight football.

To combat manipulation, Superbet has partnered with integrity services firm Sportradar, which monitors betting patterns and alerts both operators and regulators to suspicious activity.

Sportradar already works with the Brazilian Football Confederation (CBF) and 17 state federations, covering an estimated 90% of the domestic betting market. Fonseca said the company will also conduct workshops for Superbet-sponsored clubs, educating players on how fixers approach athletes and the career-ending consequences of involvement. “It also affects the credibility of the club, the championship, and the betting market,” he said. “Gambling is about trust.”

Fonseca, who took over as Superbet CEO in 2023 after senior roles at Lottoland.com, payment processor Bonafides, and Kaizen Gaming, said the industry faces pressure from multiple directions, banks, retailers, and utilities competing for consumer spending, regulatory changes that raise operating costs, and the need to invest in fraud prevention.