Brazil’s Senate Economic Affairs Committee approved bill PL 5,473/2025 on 2 December by 23 votes to one, proposing a gradual increase in gambling tax. The rate would rise from 12% to 15% in 2026 and 2027, then to 18% in 2028; the bill now proceeds to the Chamber of Deputies unless an appeal stops its progress in the Senate.
Operators would face a proposed increase in the tax rate on gross gaming revenue over the next three years.
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Brazil's Receita Federal defined gross gaming revenue as the PIS/Pasep and Cofins tax base for fixed-odds betting companies, according to two consultation rulings published in the official gazette on 28 July. The guidance says amounts collected for others, including statutory allocations to public funds and beneficiary entities, are excluded from taxable gross revenue and applies to retail and online betting.
Brazil’s betting GGR tax rose from 12% to 13% in 2026 under a measure approved by Congress and sanctioned by the executive in late 2025. The rate is scheduled to increase to 14% in 2027 and 15% in 2028; industry representatives warn that higher taxes could encourage betting activity to move to illegal platforms.
Brazil’s government issued rules for the Contribuição Social sobre Bens e Serviços and the Imposto sobre Bens e Serviços, which together are expected to carry a rate of about 26.5%. The framework taxes betting and lottery GGR after prizes and specified mandatory allocations are deducted, while the GGR levy is scheduled to rise from 12% to 15% in 2028.
Brazilian betting CEO Marco Tulio Oliveira said rising taxes could undermine efforts to reduce illegal betting. Brazil’s GGR tax rate has risen from 12% to 13%, and could reach 15% next year; Oliveira estimated that about 50% of the market remains unregulated. He also said operators generated approximately BRL 2.5 billion in tax revenue during the first two months of 2026.
Brazil’s Federal Revenue Service projected R$260 million in revenue from an increase in gross gaming revenue taxation for betting operators. Secretary Robinson Barreirinhas said tax measures affecting betting, fintechs and interest on equity are expected to generate R$4.4 billion in total.