Portugal and Brazil face gambling regulation and tax loss challenges

Governments in Portugal and Brazil are facing significant fiscal and social challenges related to the online gambling sector. In Portugal, the Associação Portuguesa de Apostas e Jogos Online (APAJO) estimates that the state lost 118 million euros in tax revenue in 2025 due to illegal gambling sites. This figure represents approximately one-third of the total tax collected from legal online gaming, which amounted to 353 million euros.

In Brazil, the government is considering a provisional measure to prohibit online casinos while maintaining sports betting. This move aims to address social concerns, though it poses economic risks. Because online casinos account for roughly 80% of betting company revenue, the prohibition could lead to significant revenue losses for the sector and require the government to compensate companies for lost tax income.

Additionally, research in Portugal highlights the financial impact on users, noting that while most citizens do not use online gambling platforms, a segment of users spends more than 250 euros per month, with some admitting to spending beyond their intended limits.