Brazil: Mixed committee to vote on tax hike for betting companies

The Brazilian Congress will resume discussions on Provisional Measure (MP) 1.303/2025, a provisional measure that proposes new taxation rules for financial investments, virtual assets and fixed-odds betting operators.

The mixed committee reviewing the MP is scheduled to vote on the report on Tuesday, September 30. If approved, it will advance to the full Chambers of Deputies and Senate for further consideration before the October 8 deadline.

The measure includes a 6% tax increase for betting companies, raising the levy from 12% to 18% of gross gaming revenue (GGR). 

According to the Ministry of Finance, the additional revenue will be directed toward health initiatives under the country’s social security system, while the remaining 12% will continue to be distributed among national ministries such as Education, Tourism, Public Security and others.

Good to know: Brazil’s Finance Minister defended the proposed tax hike in Congress

The report also expands enforcement mechanisms, requiring internet service providers to maintain direct communication channels with the Ministry of Finance to expedite blocking orders against illegal operators. 

It introduces sanctions for financial institutions that process transactions for unlicensed betting platforms and penalties for advertisers promoting illegal sites.

The Brazilian Institute on Responsible Gaming (IBJR), which represents licensed operators, criticized the proposed hike. The group argues that raising taxes undermines market stability and could push bettors toward unregulated alternatives.

Carlos Mendez

Writer

For Carlos Mendez, betting markets are best understood as conversations between numbers and behavior. His work focuses on interpreting what odds reveal about risk, pricing, and public sentiment rather than chasing short-term outcomes. Growing up in Buenos Aires, Carlos was immersed early in football culture...

Visit Profile

Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.