Brazil considers retroactive tax on betting operators

The proposal would target betting companies that operated in Brazil before the sector’s regulation came into force.

Brazil’s Federal Government is evaluating a proposal to charge sports betting operators retroactively for the period before fixed-odds betting was regulated in the country.

The Ministry of Finance confirmed that the measure is under review by a working group formed by the National Federal Revenue Service and the Secretary of Prizes and Betting (SPA). 

The groups are analysing how to apply the tax, which could be up to BR12.6bn ($2.21bn), to around 135 companies that allegedly operated in Brazil before the sector was regulated.

Payment in installments is one option being discussed. 

Federal Revenue’s Main Secretary, Robinson Barreirinhas, told lawmakers during Brazil’s CPI das Bets that companies found to have had “material presence” and generated revenue in Brazil before regulation should pay back taxes. 

Brazil’s Finance Minister Fernando Haddad has been outspoken in his criticism of betting companies, saying more than BR40bn in taxes went unpaid during the years without regulation. 

Good to know: Meanwhile, Brazilian Congress is debating a provisional measure to raise the tax rate on fixed-odds betting from 12% to 18%

The discussion comes with global parallels, as governments in other markets, such as the UK, have considered new or increased gambling taxes to boost public revenues, causing debate over the potential economic impact on regulated operators and pushback from industry representatives. 

There, calls for higher rates have been framed as a way to raise public funds, but opponents warn they risk undermining a regulated market that already contributes significant tax revenues and employment.

The concern is that the increase could reduce investment, limit marketing budgets and drive consumers toward unlicensed operators, potentially shrinking the overall tax base. 

These arguments mirror points raised by Brazilian stakeholders, who caution that retroactive or sharply higher taxes could have unintended effects on market stability.

Carlos Mendez

Writer

Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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