TLDR Brazil is targeting influencers and marketing agencies who promote unlicensed betting platforms with shared tax liability. Fintechs and banks that process payments for illegal betting operators can now be held jointly responsible for unpaid taxes. Funds seized from illegal operators will go toward public safety programs. The Federal Revenue Service will collect income tax and other levies from promoters and payment processors of illegal betting platforms. The measures aim to cut off both the financial and promotional lifelines of unlicensed offshore betting companies.
Brazil’s government has launched a new crackdown on illegal betting operators, targeting the people and businesses that help them run — including social media influencers and financial technology companies.
The measures, announced by the Brazilian Federal Government, go after two key pillars of the unlicensed betting industry: the payment channels that move money, and the promotional channels that attract players.
Influencers Face Tax Bills for Illegal Operators
Under the new rules, influencers and marketing agencies that promote unlicensed betting platforms could be held liable for the taxes those operators fail to pay in Brazil.
Robinson Barreirinhas, Secretary of the Federal Revenue Service, was direct about the policy. “If an influencer goes on social media and promotes an illegal betting operator, the Federal Revenue Service will collect income tax and PIS/COFINS taxes,” he said.
He added that if an influencer earns money from an illegal betting company based abroad, they will be expected to cover the tax bill that company owes Brazil.
This is a shift in how the government handles the promotion of illegal gambling. Previously, penalties were mostly administrative. Now, financial liability follows the money.
The policy also extends to the marketing agencies and companies that run advertising campaigns for unregistered operators, not just individual social media figures.
Fintechs and Banks on