Brazil senate committee approves tax hike on gambling
The Senate’s Economic Affairs Committee (CAE) has approved by a vote of 21 to 1, the increase in taxes for betting and fintechs (PL 5,473/2025).
Since the bill has a final stage of processing in the committee, it will go directly to the Chamber of Deputies if no appeal is filed.
Last week the bill’s rapporteur, Senator Eduardo Braga presented a Supplementary Voting Report to the bill which will have a significant impact on the proposed tax rate hike if approved.
The tax on online gambling which currently stands at 12%, will be taxed at 15% in 2026 and 2027 according to the amended text. From 2028 onwards, it will increase to 18%. Overall the text grants a far more lenient taxation for betting, against the original proposal which would have imposed a rate of 24% GGR.
“A sharp increase would harm legally operating companies that already pay taxes,” the rapporteur explained in his document.
The text allocates, in whole or in part, 3% or 6% of the additional revenue from betting to states, the Federal District, and municipalities during the period of 2026 and 2028, with the aim of compensating for losses due to the increase in the income tax exemption threshold to up to R$ 5,000.
The bill also included a new chapter devoted to combating illegal gambling and strengthening compliance and integrity. If approved operators will be required to provide proof of suitability for authorization, effectively preventing and blocking suspicious financial transactions.
To promote transparency, quarterly public reports on betting activities must be submitted, alongside specific rules governing the use of the PIX payment system to prevent misuse. The establishment of a Regulatory Compliance Index for Betting (ICRA) will further enhance oversight. Infringements within this framework may result in fines of up to R$ 50,000, holding individuals and legal entities accountable for the promotion of illegal betting practices. In addition internet companies will be obligated to remove illegal content within 48 hours of identification.
