Brazilian Congress Blocks Proposal to Increase Betting Taxation
Brazil.– October 21, 2025 – www.zonadeazar.com Brazil’s National Congress has halted a proposal to raise the tax burden on sports betting operators, highlighting political divisions over fiscal policy and the future of the newly regulated iGaming sector.
Overview
A legislative initiative to increase taxation on sports betting has been temporarily shelved in Brazil’s Chamber of Deputies. The proposal, which sought to raise the effective rate on operators’ gross revenue, failed to advance in the Finance and Taxation Committee due to lack of consensus among government allies and industry representatives.
The bill aimed to revise the 2024 model that currently imposes a roughly 12% tax on operators’ net revenue.
Details / Context
The proposed adjustment, led by members of the Fiscal Responsibility caucus, sought to raise the rate to 18%, arguing that higher tax collection is necessary to support federal accounts.
However, the Ministry of Finance and major operators warned that such a change could harm “channelization”, slowing the migration of players from unregulated to licensed platforms.
Trade groups such as the Brazilian Sports Betting Association (ABAE), along with operators Betano and Betsson, stressed that excessive taxation could undermine competitiveness and drive bettors back to offshore sites.
Future Outlook
The debate is expected to resume in coming weeks as lawmakers seek a balance between fiscal needs and market stability.
Brazil’s regulated betting industry is projected to exceed BRL 20 billion in turnover by the end of 2025, underscoring its growing economic relevance.
For long-term sustainability, experts advocate maintaining moderate taxes and reinforcing enforcement against illegal gambling. The bill’s rapporteur, Fernando Ribeiro, said any fiscal changes must be “gradual and predictable”.
Impact
Industry stakeholders welcomed the congressional pause, viewing it as a pragmatic decision.
Balanced taxation could ultimately increase government revenue by expanding the legal market and ensuring compliance.
The discussion also reinforces Brazil’s role as a key reference for Latin America in establishing responsible and economically viable gaming frameworks.
Closing
Brazil’s decision to halt the proposed tax hike signals an effort to preserve the health of a fast-growing industry while refining its regulatory framework.
The coming months will be crucial as policymakers, regulators, and operators work to shape a sustainable balance between taxation, integrity, and competitiveness in the country’s betting landscape.
🔗 Edited by: @_fonta www.zonadeazar.com