Porto Alegre City Council is considering a proposal to increase the ISSQN rate on betting and lottery-related services from 2% to 5%. The proposal covers bingo, lottery tickets, pool cards and capitalization bonds and remains under discussion in upcoming plenary sessions.
If approved, the proposal would increase the municipal service tax rate for the listed betting and lottery activities.
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Brazil's Chamber of Deputies approved a bill raising tax on betting companies and cutting tax incentives, and the Senate was due to consider it on 17 December, according to reports. The measure would raise the tax on betting revenue from 12% to 15% in annual steps through 2028; the article reported a target of R$20bn in revenue for the 2026 budget.
Brazil’s government is considering tax changes, including a proposal to raise the levy on betting companies from 12% to 14%, as it seeks to adjust the 2026 budget, reportedly. The proposal was introduced by PT leader Lindbergh Farias and could face opposition in Congress; an earlier measure had proposed an 18% rate.
A joint committee of Brazil’s Congress is considering a provisional measure that would raise the tax on sports betting companies’ gross gaming revenue from 12% to 18%. The proposal directs the additional six percentage points to social security health measures; if approved, it would go to both congressional plenaries, with a deadline of 8 October. The regulated betting sector warned the increase could drive customers to illegal platforms.
Brazil’s government published Provisional Measure 1,399/2026 setting a 0.5% selective tax rate for prognostics contests from 2 February 2027. The measure covers lottery formats, fixed-odds bets and fantasy sports through its reference to the relevant tax law; the rate applies during 2027, with permanent rates due to take effect in 2028.
On the evening of Wednesday the 4th, the federal government issued Provisional Measure 1,399/2026 in an extra edition of the official gazette, and the measure sets Selective Tax rates for 2027. Article 7 puts the rate for prognostics contests, which is what concerns the lottery and betting sector, at 0.5%. Article 19 delays the measure's effects until 2 February 2027 because of the noventena.
Belo Horizonte City Council was due to consider two bills restricting betting advertising in a second-round vote on 10 June. One proposal limits advertising and sponsorships, while the other would prohibit online betting advertising and related promotions; each requires at least 21 votes to pass.