Brasil: Haddad Says Betting Firms Will Pay 30% Retroactive Tax

Brazil.– 9 October 2025 – www.zonadeazar.com Brazil’s Finance Minister Fernando Haddad announced that betting companies operating without prior taxation will face a 30% retroactive charge, consisting of 15% tax and 15% penalty.

Overview

Speaking at the Senate, Haddad outlined that the measure is part of a government initiative to recover unreported funds, increase revenue, and align the betting sector with Brazil’s evolving tax framework.

The proposal is included in the Provisional Measure 1303/2025 (IOF Bill), creating a special programme known as RERCT – “Zero Litigation Bets”, designed to repatriate undeclared income and bring operators into compliance.

The ministry expects to raise around R$ 5 billion through this initiative.

Details / Context

  • The 30% charge (15% tax + 15% fine) will apply to the period when betting firms operated without regulation.
  • The measure focuses on equity between compliant and non-compliant operators.
  • Lawmaker Carlos Zarattini (PT-SP) confirmed the removal of the proposed GGR tax increase from 12% to 18%.
  • Haddad stressed that the goal is not to punish but to ensure transparency and tax justice in the gaming market.
  • Once regularised, companies will be able to operate under the official licensing system.

Subtopic: Political And Industry Reactions

The announcement triggered debate across Congress and the industry.
Supporters hailed it as a necessary fiscal correction, while critics questioned the feasibility of retroactive enforcement and its potential impact on investment.

Industry representatives agreed that regulation is essential but demanded clear implementation guidelines to avoid double taxation.

Future Outlook

If approved with the IOF Bill, the measure will mark a turning point for Brazil’s gaming industry, transitioning from informal activity to a regulated, accountable ecosystem.

The plan demonstrates the government’s intention to balance revenue collection with investor confidence, setting an example for emerging markets.

Zona de Azar, the leading global iGaming news outlet, will continue to report on developments and industry responses as the proposal moves through Congress.

🔗 Edited by: @_fonta www.zonadeazar.com

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