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Brazil sets CBS rules for betting and lottery activities

Regulation

Brazilian President Luiz Inácio Lula da Silva issued Decree 12,955/2025 to regulate the application of the Social Contribution on Goods and Services (CBS), according to the report. The rules cover lotteries, fixed-odds betting and other specified betting formats, with tax applying to gross gaming revenue after prizes are deducted. The report says the GGR rate is scheduled to rise from 12% to 15% by 2028, with the overall tax burden estimated at about 42% by 2033.

The GGR tax base and scheduled rate increases help operators and lottery providers assess Brazil’s future tax exposure.

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Regulation

Brazil finance minister says betting suspension will require 2027 budget adjustment

Brazilian Finance Minister Dario Durigan said on 5 November that suspending betting would reduce projected Selective Tax revenue and require an adjustment to 2027 budget planning. The government collected R$15.3bn in sector taxes between January 2025 and September 2026, according to figures presented by the Federal Revenue Service. Congress must review the provisional measure within 120 days, with the deadline extending to 5 March 2027; otherwise, the measure will expire.

Brazil's President Luiz Inácio Lula da Silva decided on 25 September to ban sports betting and online gaming, and this will reduce projected Selective Tax revenue next year. Finance Minister Dario Durigan announced this at a press conference on Thursday.

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