Former Chamber of Deputies president Arthur Lira said the federal government should address illegal betting before increasing taxes on regulated operators in Brazil. He cited the rejection of a proposal to raise the tax on betting companies’ profits from 12% to 18%; other proposals would increase it to 24%.
The proposed tax changes could affect the cost burden for regulated betting operators in Brazil.
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Brazilian congressional leaders and the government were discussing whether to add higher taxes on betting companies and fintechs to a bill reducing tax benefits, according to the report. A Senate committee-approved proposal would raise the tax on betting companies’ gross revenue from 12% to 15% next year and 18% from 2028; the article said the bill’s rapporteur had not disclosed his plans. The proposal remained under negotiation.
Senators warned Finance Minister Fernando Haddad that the Senate may lack votes for a bill raising betting tax on gross gaming revenue from 12% to 24%; the proposal also lifts the CSLL rate for fintechs from 9% to 15%. The Economic Affairs Committee postponed consideration on 4 November, and the bill could be read there on 11 November, though a vote is not assured.
Brazilian President Luiz Inácio Lula da Silva backed raising the tax rate on online betting from 12% to 18% in a podcast interview released on 19 June. He also supported increasing the IOF, while Senator Randolfe Rodrigues said the government had not settled its position on casino legalisation.
Brazil’s finance minister Fernando Haddad said the government plans to raise the tax on online betting companies’ GGR from 12% to 18% as part of measures to offset changes to IOF rates. The proposal is to be detailed in a provisional measure, which takes effect immediately but requires legislative review; the president must also validate the changes.
Brazil’s Secretariat of Prizes and Betting (SPA) issued an ordinance setting procedures for financial institutions to identify and block transactions linked to illegal betting. Banks and payment institutions may have up to 45 days to examine suspicious activity; after the SPA orders a block, they have up to 24 hours to restrict identified accounts and up to 48 hours to confirm compliance. Further procedural details are due in a separate normative instruction.