The National Association of Games and Lotteries (ANJL) has initiated legal action against the Brazilian Association of Supermarkets (ABRAS), accusing the retail trade group of spreading misinformation about the licensed gambling sector through a video circulated on social media. This lawsuit emerges amidst significant pressure on Brazil’s recently regulated gambling industry.

On Monday, June 16, 2025, the ANJL publicly challenged ABRAS over a video titled “History of Bets.” This video linked the regulated betting sector directly to food insecurity in Brazil, making claims that every Brazilian real spent on betting leads to “one less dish on the table” and a “bill that is late.” The video further alleged that the retail sector missed out on BRL103 billion (approximately $18.7 million) in revenue last year (2024) due to gambling.

The ANJL responded swiftly, highlighting official data from the Brazilian Institute of Geography and Statistics which, in contrast, showed the retail sector actually recorded growth of 4.7% in the last year. The ANJL asserts that the ABRAS video goes beyond “criticism of specific agents and affects the sector as a whole.”

ANJL President Plínio Lemos Jorge stated, as reported by iGaming Times, that “The retail sector has decided to choose someone to blame for the rise in food prices on families’ tables. And, in their opinion, betting companies are responsible.” Lemos Jorge dismissed this as “absurd,” asserting, as reported by iGaming Times, that it “spreads fake news that aims to attack a legitimate sector of the economy, which will generate more than BRL4 billion in taxes this year alone.” He further characterised reducing the country’s budgetary issues to the regulated betting market as “irresponsible and simplistic.”

Challenging “Silent Predator” Claim and Tax Misrepresentation

The ANJL also took strong exception to the ABRAS video’s labelling of online gambling as a “silent predator,” accusing the video of being offensive and conveying a “tone of misinformation.” The ANJL argues that the video deliberately fails to properly differentiate between licensed betting operators and their illegal counterparts, which divert billions of reals away from public revenue in Brazil. Lemos Jorge underscored, as reported by iGaming Times, that “Nobody came in stealthily, as the video says,” pointing out that the names of legalised houses are public and can be consulted on federal government websites, which also publish information whenever a betting company is authorised to operate in the country. He concluded, as reported by iGaming Times, that “ABRAS may be against the betting sector, but it cannot disseminate false information.”

The ABRAS video additionally claimed that operators only pay a 12% tax, asserting the retail sector’s tax burden is unfair in comparison and stating, “It makes no sense for a betting game to pay less tax than you pay to eat.” In response, the ANJL called the 12% tax figure an “erroneously mentioned fact,” clarifying that this figure applies only to gross gaming revenue (GGR). The ANJL highlighted that when combined with other taxes, such as PIS/Cofins and municipal contributions, the effective tax rate for licensed operators is around 38%.

This effective tax rate is, moreover, set to increase. The government published a provisional measure (MP 1303) last week (early June 2025) that raises the tax rate on GGR to 18%, representing a 50% hike from the previous 12%. While the provisional measure is effective immediately, Brazilian law states that the increased contributions will only be collected from 90 days after its publication on June 11. The Senate and Chamber of Deputies will have 120 days from the measure’s publication to vote on whether to make this tax increase permanent.

The lawsuit filed by ANJL against ABRAS underscores the escalating tensions between segments of Brazil’s retail sector and the newly regulated gambling industry, as the latter seeks to defend its legitimacy and economic contributions amidst public criticism.