ANJL Proposes Alternatives and Rejects Betting Tax Increase

Brasília, June 9, 2025 – The National Association of Games and Lotteries (ANJL) has sent a technical note to all party leaders in the National Congress, as well as to the presidents of the Federal Senate, Davi Alcolumbre, and the Chamber of Deputies, Hugo Mota, this past Sunday (8). The document presents alternatives to the proposal to raise the tax rate on betting sites from 12% to 18% of Gross Gaming Revenue (GGR), aimed at offsetting the R$20 billion in revenue projected by Finance Minister Fernando Haddad for 2025 through an increase in the IOF.

The study, authored by economist Itanielson Cruz, analyzes the risks of this measure in the report titled “Economic and Fiscal Assessment of the Alternative of Increasing Online Betting Taxation in Partial Substitution of the IOF Increase.” It warns of adverse impacts on the sector, including the exit of licensed operators, reduced tax collection, and migration of bettors to the illegal market.

Currently, betting operators pay 12% tax on GGR and 34% on profits (25% Corporate Income Tax + 9% Social Contribution on Net Profit). They also pay annual oversight fees of up to R$23.3 million and an authorization fee of R$30 million for five years of regular operation. Bettors pay a 15% income tax on net winnings.

ANJL highlights that raising taxes could reduce the competitiveness of odds, pushing bettors towards illegal platforms. The illegal market already accounts for 60% of fixed-odds betting in Brazil, moving between R$6.5 billion and R$7 billion per month.

The document also points out that combating the illegal market could generate up to R$15 billion in annual revenue, exceeding the additional revenue expected from the IOF increase (around R$2.2 billion per year).

ANJL recommends measures such as strengthening oversight, encouraging companies to regularize, and educating bettors instead of raising taxes. This would ensure a more sustainable, safe, and efficient environment for Brazil’s regulated betting sector.

Press Contact:
National Association of Games and Lotteries (ANJL)
www.zonadeazar.com