Brazil’s Congress drops proposed betting tax hike
Lawmakers remove Government’s plan to raise the betting tax from 12% to 18% GGR.
Key Points
- Proposal to raise betting tax from 12% to 18% GGR was withdrawn from the bill
- New mechanism to regularise undeclared betting assets introduced
- Draft maintains measures to target illegal betting sites within 48 hours
Brazil’s Chamber of Deputies has removed a proposed tax increase on fixed-odds betting from the latest version of a provisional measure designed to offset changes to the national Financial Operations Tax.
The initial plan, advanced by the Ministry of Finance, sought to raise the betting tax rate from 12% to 18% on gross gaming revenue, the total collected from wagers minus prizes paid to players.
The decision was made by Deputy Carlos Zarattini, main name for the bill, who presented his updated draft to the joint congressional committee reviewing the measure.
The move follows weeks of political negotiation between lawmakers, the Finance Ministry and congressional leaders.
While the Government had forecast BR10.5bn ($1.8bn) in revenue for 2025 and BR20bn in 2026, Zarattini estimated that dropping the betting tax increase and reversing a proposed levy on credit securities will cut projected revenues by around BR3bn.
Despite the withdrawal of the tax hike, the revised text includes significant new measures targeting unregulated betting activity.
Good to know: Brazil’s Ministry of Finance launched an anonymous reporting platform for match-fixing
The proposal establishes a Special Regime for Regularisation of Exchange and Tax Assets, allowing operators and individuals to voluntarily declare undeclared or misreported betting-related income and repatriated assets.
Additionally, the bill introduces enforcement provisions against illegal betting platforms, requiring internet providers to remove or suspend irregular content within 48 working hours of notification.
Lawmakers are expected to revisit the issue once the current framework for sports betting stabilizes.
Besides that, the Senate will debate a bill creating a fund and program for orphaned children financed with 1% of lottery revenue, about BR150m annually.
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