Brazil’s government has pledged to pursue higher taxes on betting companies after withdrawing a proposal to raise the GGR tax from 12% to 18%. Some lawmakers now want the rate doubled to 24%, while the IBJR argues that higher taxation could harm legal operators and says action against illegal betting could increase revenue.
A proposed tax rise could change the costs facing betting operators in Brazil.
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Belo Horizonte’s municipal budget and finance committee approved a favourable report on a city-backed bill to reduce the ISSQN rate on online sports betting platforms from 5% to 2%. The proposal can now go to a first-round vote in the city council; approval requires 28 votes.
Brazil’s Planning Minister Simone Tebet argued that betting companies should pay a tax rate of at least 27.5%, matching the income tax rate paid by public servants. A Senate bill under discussion would increase betting tax from 12% to 24%; Tebet said the revenue would help balance the government’s 2025 and 2026 budgets.
Brazilian Finance Minister Fernando Haddad said the government still supports an 18% tax on sports betting gross gaming revenue, while Congress considers a proposal for a 24% rate. Industry representatives have proposed retroactive tax payments as an alternative, and the legislative debate was expected in the second half of November.
Brazilian betting companies are reportedly discussing retroactive tax payments with government leaders in Congress in exchange for limiting a proposed increase in the betting tax rate. The proposal would raise the rate from 12% to 24%; some firms are seeking a cap of 15%, while an unidentified industry executive estimated retroactive collections could reach R$12.5bn. The Finance Ministry did not respond to the report’s request for comment.
Brazilian lawmakers are considering proposals to raise taxes on betting companies, with one bill proposing an increase from 12% to 24%. Industry representatives are reported to accept taxing gross revenue but oppose the proposed rate and seek removal of the 15% tax on bettors’ net winnings. The Senate Economic Affairs Committee was due to vote on a separate rate-increase bill on 4 November.