Lula Pushes to Raise Tax on Sports Betting Operators
Brazil.– October 22, 2025 – www.zonadeazar.com President Luiz Inácio Lula da Silva has directed his government to move ahead with a plan to increase the tax burden on sports betting operators, despite opposition within Congress. The decision reflects the administration’s intent to strengthen fiscal revenue and regulatory control over the fast-growing betting industry.
Overview
In a cabinet meeting, Lula described the current tax rate as “insufficient,” arguing that companies profiting from Brazil’s thriving betting sector must contribute more to national coffers. The Finance Ministry’s proposal raises the federal tax rate on gross gaming revenue from 12 % to 18 %, with part of the proceeds allocated to sports development and integrity programs.
Details / Context
The initiative follows the market’s formal regulation in 2024 and the surge in licensed operators throughout 2025. Government economists argue that the reform will improve transparency, ensure fair competition and reduce loopholes that have enabled under-reporting.
The bill also includes creating a National Sports Fund to finance youth programs and anti-match-fixing efforts. Critics, however, warn that the higher tax could prompt some operators to shift activity to offshore jurisdictions.
Despite pushback, the administration remains determined to approve the reform, stressing that it aligns Brazil’s policy with European best practices in gaming taxation.
Regional governments have expressed interest in participating in the revenue split, emphasizing the role of state lotteries and local oversight agencies. Negotiations on fiscal redistribution are expected to continue through November.
Future Outlook
The measure will be discussed in public hearings in the Chamber of Deputies. If approved, Brazil would join the ranks of jurisdictions with the world’s most stringent betting tax regimes, coupled with an advanced compliance structure.
Analysts forecast annual additional revenue exceeding USD 600 million, funding sports initiatives and social programs.
For Lula, the reform serves as both a fiscal milestone and a statement of political will: demonstrating that Brazil can grow its gaming sector responsibly while safeguarding integrity and public trust.
Key Themes
- Fiscal adjustment: Raising the GGR tax from 12 % to 18 %.
- Public benefit: Part of the proceeds directed to a national sports and integrity fund.
- Political friction: Opposition from business-friendly lawmakers may delay voting.
- Revenue potential: Expected to add BRL 3 billion per year to federal income.
- Regulatory consolidation: Reinforces Brazil’s leadership in Latin American gaming governance.
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