Brazilian government increases tax on operators
The Executive Power has forwarded a Provisional Measure (MP) to the National Congress that increases the tax on betting operators. The matter was published this Wednesday (11) in an extra edition of the Official Gazette and requires a vote by senators and deputies by August 28.
The Provisional Measure (MP) 1.303/2025, which includes a raft of other measures, was implemented as a means to compensate for the revocation of a decree by President Luiz Inácio Lula da Silva that aimed to increase the Tax on Financial Transactions (IOF). Alternative solutions to the IOF increase were discussed on Sunday (8) by Finance Minister Fernando Haddad and the presidents of the Senate, Davi Alcolumbre, and the Chamber of Deputies, Hugo Motta, following adverse reactions from Congress regarding the decree.
The provisional measure increases the tax burden on sports betting, raising the tax rate on betting companies’ revenues from 12% to 18% Gross Gaming Revenue (GGR). It also amends Law No. 14,790 of 2023 to strengthen regulations addressing illegal betting activities.
The announcement will have a significant impact with some operators expected to leave the market. Before the MP was published the president of the IBJR (Brazilian Institute of Responsible Gambling) Fernando Vieira stated that the government’s plan to increase the tax on bets from 12% to 18% could jeopardize the business in the country.
In addition to compromising the operations of legalized companies, Vieira noted that the tax hike tends to stimulate the illegal market. “We cannot accept a change like this being made in the taxation of the sector. This ends up making a significant portion of the operations of the already legalized bets unviable,” he told Poder360.
Meanwhile The National Association of Games and Lotteries (ANJL) has sent a document to leaders of the National Congress criticizing the increase in taxes. The entity claims that the proposal could generate billions in revenue losses for the country and also benefit illegal gaming platforms.
With the tax hike, the government expects that the increase in betting taxation will generate a monthly impact of around R$170 million, reaching a maximum of R$680 million. However, according to the ANJL, the measure announced by the government should impact requests for operating authorization under analysis at the Prizes and Betting Secretariat (SPA) and could represent the loss of R$2.8 billion in revenue for the country, with new operators giving up on entering the regulated market.
The entity forwarded the study to the presidents of the Federal Senate and the Chamber as well as to all party leaders in the National Congress.
The document also warns that the “proposal to increase the rate applicable to the GGR occurs at a sensitive time in the process of implementing the new regulatory framework and may increase the likelihood of legal action by companies that are already licensed or have requests under analysis.”
