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

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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