Brazilian Senator Randolfe Rodrigues urges higher betting taxes

Senator and Congress Government Leader Randolfe Rodrigues has renewed his call for Congress to raise Brazil’s betting tax rate, arguing that the country’s current 12% levy remains “the lowest in the world” and fails to address the social and economic impact of the sector.

Rodrigues said the Government aims to increase the rate to between 18% and 20%, bringing it closer to levels seen in markets like New York (52%), Europe (above 20%) and Kenya (around 18%). 

He noted that Brazil’s betting industry, left untaxed under the previous administration, has expanded rapidly and now represents a growing regulatory challenge, particularly among lower-income households.

“Betting, today, is a national epidemic that especially affects poorer families,” Rodrigues said. “There are types of betting operations that should be prohibited altogether and others that deserve selective taxation, just as we do with cigarettes and alcohol.”

The Senator described the planned rate hike as part of a wider fiscal and social strategy, combining revenue generation with responsible gambling controls. 

According to him, the measure could yield between BR1.5bn and BR2bn ($277m-$370m) in additional revenue for the 2026 federal budget, offsetting recent fiscal gaps left by the expiration of temporary measures.

Rodrigues also linked the proposal to broader discussions around selective taxes and the Government’s new fiscal framework, emphasizing that regulating the sector is as much about fairness as revenue. 

“We are one of the most unequal countries in the world. We want to reduce inequality. If we tax those who have never been taxed in Brazil, we will slightly lessen the strength of this inequality in the country. This is the debate we want with Congress and with society,” he said.

While regulatory clarity has advanced, taxation remains a central political fault line between the Government and industry stakeholders.

Mark Sullivan

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