Business · Economy · 1 day ago
Brazil investigates 14 betting sites over declared revenue
Brazil’s Finance Ministry is investigating 14 betting sites over possible underreporting of revenue and other practices that could reduce tax and social-program funding.
One case involves Blaze, a betting platform operating in Brazil.
The company deducted more than R$477 million in promotional payments from revenue of about R$1.9 billion, but investigators are examining whether those payments qualified as withdrawable bonuses.
Blaze’s terms required users to place many bets before they could withdraw promotional money, and some industry executives say those amounts should not have been deducted as bonuses.
The suspected loss in the Blaze case could reach R$96.1 million, including about R$57 million in social funding tied to revenue.
Blaze’s rights holder in Brazil says it follows the rules and is available to answer questions from authorities.
Separately, a temporary government measure has barred betting sites from operating in the country for 120 days; Congress must approve the measure or it will expire, and lawmakers are discussing a possible compromise.
Brazil’s Finance Ministry is investigating 14 betting sites over allegedly understated revenue and other practices that could reduce tax and social contributions.
One case involves Blaze, which may have caused a loss of up to R$96.1 million, according to two ministry employees cited anonymously.
Blaze deducted more than R$477 million in promotional amounts from revenue of about R$1.9 billion, while four betting-sector executives told Folha those amounts did not qualify as withdrawable bonuses.
The company says it calculates gross revenue in line with regulations and is available to clarify matters to authorities.
Another company under investigation is RR Participações, which controls MultiBet and Ricobet.
- Who
- Brazil’s Finance Ministry is investigating 14 betting sites, including Blaze and RR Participações.
- What
- The investigation concerns allegedly understated revenue and other practices that may affect tax collection and social contributions.
- When
- The article was published on October 11, 2026. The timing of the investigation is not stated.
- Where
- Brazil.
- Why
- The ministry is examining practices that may reduce government tax revenue and required social contributions.
Finance Ministry guidance and unnamed betting-sector executives
Blaze
Promotional amounts
Finance Ministry guidance and unnamed betting-sector executives
The ministry’s guidance says non-financial rewards usable only within a platform should be treated as marketing costs; four executives said the amounts at issue could not be considered withdrawable bonuses.
Blaze
Blaze says it calculates gross revenue in accordance with current regulations and authorities’ guidance.
A Blaze website post said promotional money had to be used for a minimum number of bets before it could be withdrawn.
The Finance Ministry published technical guidance on when betting platforms may deduct withdrawable bonuses from gross revenue.
Blaze’s website went offline, according to the article.
A government provisional measure prohibited betting sites from operating in Brazil for 120 days, subject to congressional ratification.
- Sites under investigation
- 14
- Potential loss in Blaze case
- Up to R$96.1 million
- Blaze promotional deductions
- More than R$477 million
- Blaze declared revenue before deductions
- About R$1.9 billion
- Social allocation rate
- 12% of gross revenue
- Other company investigated
- RR Participações, controller of MultiBet and Ricobet
What people are saying
The Foggo Entertainment does not comment on specific figures from its financial statements outside its proper corporate channels and deadlines and remains available to the competent authorities for any clarifications that may be necessary.
This happens because the rules for using rewards are different from the terms for real money.
Sources
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