Gambling companies should pay more taxes says Brazil’s President
During the launch of the 2025/26 Harvest Plan President Luiz Inácio Lula da Silva harshly criticized the online sports betting sector, and defended higher taxes on the industry.
For Lula, betting platforms have very high profits without generating real wealth for the country, while productive sectors, such as agribusiness, face high costs to produce and generate jobs.
“The cost of raising cattle is very high compared to the profits of those who own a betting company. These companies have almost no costs, earn millions and refuse to pay taxes. This is not fair,” said the president.
Lula emphasized that while the government aims to exempt individuals earning up to R$5,000 per month from income tax, it is essential to impose higher taxes on those with substantial incomes. According to Lula, increasing taxation on betting would help finance public policies, such as education and income transfer programs.
At the event, he also reinforced that the tax reform under discussion seeks to correct distortions and make tax collection fairer, charging less from those who earn little and more from sectors that make high profits without generating direct jobs.
The announcement follows the Federal Revenue Service’s report that the online gambling sector generated approximately R$3 billion in tax revenue during the first five months of this year. This represents an increase of over 40,000% compared to the same period last year, when only R$7 million was collected. The surge in revenue is attributed to the enforcement of regulations governing sports betting and online games, which took effect on January 1, 2025. The government is also trying to increase the tax on online gambling from 12% to 18% Gross Gaming Revenue (GGR).
