The Brazilian Institute for Responsible Gaming (IBJR) said a proposal to raise tax on gross gaming revenue from 12% to 24% could increase the sector’s overall tax burden by 45%. It cited a study estimating that illegal platforms account for 51% of bets and R$10.8bn in annual lost tax revenue.
The proposed rate change could affect licensed operators’ tax costs and competition with illegal betting platforms.
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Brazil’s finance minister Fernando Haddad said on 5 November that proposed tax increases on betting operators and fintechs could raise about R$5bn in 2026. A bill before the Senate’s Economic Affairs Committee would raise the tax on betting gross gaming revenue from 12% to 24%; Haddad said the government had included the projected revenue in its 2026 budget planning. The committee president said a vote was due by 11 November.
Brazilian betting-industry representatives met deputy Carlos Zarattini on 9 July to discuss a measure that would raise the tax on sports betting GGR from 12% to 18%. They argued the increase could threaten regulated operators and asked him to consider sector proposals; Zarattini said he would review them after the joint committee is established and may hold a public hearing.
Brazilian government relations minister Gleisi Hoffmann and congressional government leader Randolfe Rodrigues backed raising taxes on betting companies as part of a proposed package to offset changes to the IOF financial transactions tax. Rodrigues said a provisional measure was in final adjustments; one proposal would increase betting taxation from 12% to 18%, but congressional approval is not assured.
Brazilian Finance Ministry executive secretary Rodrigo Orair said tax reform and the proposed Selective Tax are expected to affect betting operators. He said the sector would pay the full rates of the new IBS and CBS consumption taxes, while the social allocation rate is expected to rise from 12% to 15%; Selective Tax rates remain undefined.
A study commissioned by the Brazilian Institute of Responsible Gaming projects that the tax burden on Brazil’s betting sector could rise from 32% to 42% by 2033 amid tax reform. LCA Consultoria conducted the study; industry representatives warned that higher taxes could affect operators and consumers.