Brazil: Senate Approves Gradual Tax Increase on Bets and Fintechs
Brazil.– December 4, 2025 – www.zonadeazar.com Brazil’s Senate Economic Affairs Committee approved a bill that gradually raises the tax burden on betting operators and fintechs. The rate for betting companies will increase to 15% in 2026 and 2027, and to 18% starting in 2028, signaling a structural shift in the regulated market.
Overview
Brazil’s Senate took a decisive step toward restructuring the fiscal framework for online betting and digital financial services. The Economic Affairs Committee (CAE) approved a bill establishing a progressive tax increase for sports betting operators, online gaming platforms, and fintech companies.
The core objective is to align the tax treatment of emerging digital players with that of traditional banks. Betting companies, which currently operate under lower tax rates, will face gradual increases over the next three years. According to the approved text, bets will be taxed at 15% in 2026 and 2027 and at 18% from 2028 onward.
Details / Context
The debate in the CAE focused on the need for sustainable and predictable rules for a sector that has expanded rapidly in both market size and potential revenue. Lawmakers highlighted that the sector’s evolution requires a regulatory framework capable of ensuring financial stability without compromising the competitiveness of authorized operators.
In addition to adjustments for betting companies, the bill modifies the Social Contribution on Net Profit (CSLL) applied to fintechs and digital financial institutions. The current 9% rate will rise to 12% in 2026 and to 15% in 2028. For credit, financing, and investment entities, the CSLL will increase from 15% to 17.5% in 2026 and to 20% in 2028.
The proposal also introduces a tax-regularization program for low-income individuals, aiming to balance fiscal adjustments and broaden revenue sources without concentrating the impact solely on the private sector.
The bill follows a regional trend toward progressive taxation, integrity requirements, and stronger compliance within regulated gaming markets. With this measure, Brazil aligns its tax structure with international standards for betting and digital finance operators.
Key Subtopics
Economic impact
The increased tax burden will boost revenue for Brazil’s social security system, particularly health-related programs. Legislators argue that additional contributions from the sector will help fund essential policies without applying generalized tax hikes on citizens.
Effect on regulated operators
Betting companies will need to adjust operational and financial strategies. The gradual increase allows for predictable adaptation, but may require recalibrations in marketing budgets, product offerings, and margin structures.
Fintech taxation shift
Brazil’s rapidly expanding fintech sector will face a more stringent tax environment, similar to that of traditional banks. Analysts believe this will help “mature” the digital finance ecosystem and reduce fiscal arbitrage.
Regulatory harmonization
The vote strengthens efforts to create a unified framework for betting, fintechs, and banking, reducing regulatory gaps and preventing artificial competitive advantages.
Future Outlook
The bill now proceeds to the Chamber of Deputies for review and potential approval. Unless a request is made for a plenary vote, it will continue through the regular legislative process.
This legislative step represents a turning point for Brazil’s sports betting industry, which has undergone major formalization since the implementation of Law 14.790. The combination of higher taxation, integrity requirements, and stronger financial controls marks a new phase of professionalization and consolidation for the regulated market.
Industry analysts expect that the gradual tax increase will enhance government revenue without discouraging foreign investment or reducing market dynamism. At the same time, it reinforces Brazil’s regulatory structure at a moment when the country seeks to balance economic growth with fiscal responsibility and institutional transparency.
Edited by: @_fonta www.zonadeazar.com