Brazilian Government Targets BRL 12.6 Billion in Retroactive Taxes from Betting Operators

Brazil, August 12, 2025 – www.zonadeazar.com – The Federal Revenue Service is considering collecting BRL 12.6 billion in retroactive taxes from sports betting operators that operated in the country before the sector was regulated.

Threat to Legal Certainty

The measure raises concerns for violating principles such as non-retroactivity and tax anteriority.
Since Law No. 14,790/2023 took effect in January 2024, betting taxation has been set at 12% on GGR (gross gaming revenue after prizes), with projected revenue of BRL 12 billion annually. Between January and May 2025, collections reached BRL 3.026 billion, a 40,000% increase from the previous year.

More Tax Hikes on the Horizon

In addition to retroactive charges, Congress is debating MP 1.303/2025, which proposes increasing the rate to 18%, a move that could impact operational viability and benefit the illegal market.

Economic and Social Concerns

Experts warn that raising taxes without stronger enforcement may fuel illegal operations, which already account for an estimated 41% to 51% of the market, with annual tax losses of up to BRL 10.8 billion.
They also point to the risk of fiscal dependency on an activity with serious social challenges, such as gambling addiction.

🔗 Edited by: @_fonta – www.zonadeazar.com