The Brazilian Institute of Responsible Gaming (IBJR) published an infographic in São Paulo on 23 October outlining potential tax changes for online betting. It said the combined consumption tax burden could reach 45.4% if the proposed GGR rate increase from 12% to 24% advances alongside the planned CBS and IBS taxes.
The proposals could change licensed operators’ tax exposure in Brazil if enacted.
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A legal analysis says Brazilian betting operators face an effective tax burden of 57.25% to 60.25%, compared with 36% to 41% in the UK. It says proposed Senate bills raising the GGR rate to 18% or 24% could increase Brazil’s burden to about 64.25% to 70.25%.
IBJR director general André Gelfi warned that Brazil’s betting tax framework remains fragile amid proposals for higher levies. A Senate committee decision would phase the tax on Bets licences from 12% to 18% of GGR by 2028; Gelfi also criticised a proposed 15% CIDE-Bets contribution on each bet.
The Instituto Brasileiro de Jogo Responsável (IBJR) warned on 6 December that the proposed Cide-Bets tax could strengthen illegal betting in Brazil. The group said legal operators already face an estimated tax burden above 35% and questioned projections of R$ 30 billion in additional annual revenue.
The Brazilian Institute for Responsible Gaming cited a study estimating that 51% of sports bets in Brazil take place on illegal platforms, with annual tax losses of R$10.8 billion. It also said proposed legislation would raise the tax rate on regulated betting from 12% to 24%; the institute estimated the combined tax burden would reach 45.4%.
IBJR acting president André Gelfi said Brazil’s government was treating betting as a quick source of tax revenue and had not maintained dialogue with the sector. He criticised a bill from PT leader Lindbergh Farias that would raise the tax on betting companies’ gross gaming revenue from 12% to 24%; Gelfi warned of business closures, revised investment and growth in the illegal market.