Rapporteur Drops Tax Increase But Backs Retroactive Bets Collection
Brazil.– October 8, 2025 – www.zonadeazar.com Senator Ângelo Coronel, rapporteur of Brazil’s sports-betting bill, has dropped his proposal to raise gaming taxes but introduced a new clause allowing retroactive taxation on betting activity since 2023 — a move that triggered strong reactions across the regulated market.
Overview
Coronel stated that the withdrawal of the proposed tax hike from 12% to 18% on GGR aims to keep Brazil competitive internationally.
However, his push for retroactive collection seeks to recoup revenue from operators that profited before regulation.
The senator argued this measure would ensure “tax fairness” between licensed and pre-regulated operators. Yet, industry leaders see it as legally questionable and economically counterproductive.
Details / Context
The Senate’s mixed committee is currently reviewing the bill regulating fixed-odds betting.
Coronel’s revision removes the unpopular tax increase but adds retroactive liability for operators active since the previous year, even though the legal framework was not yet finalized.
Senator’s Position
According to Coronel, companies operating in Brazil since 2023 must contribute to public finances for the period they generated revenue.
He insists this applies only to unlicensed operators, not to those awaiting the upcoming authorization process.
Industry Reaction
Gaming associations and legal experts quickly rejected the idea, warning it violates the principle of legal certainty and could open a wave of lawsuits.
International investors expressed concern over regulatory instability, urging lawmakers to maintain predictability as the market transitions to formal licensing.
Economic and Political Impact
Analysts estimate that the measure could target hundreds of millions of reais in potential retroactive taxes, affecting mostly global operators.
While some legislators see it as a matter of fairness, others argue it punishes early-stage investors who supported the market’s growth before regulation was complete.
The government faces pressure to finalize the bill in time to launch the new licensing regime by early 2026.
Future Outlook
The Senate committee will continue discussions in the coming weeks.
Market stakeholders expect the retroactive clause to be removed to preserve investor confidence and ensure sustainable tax policy.
If approved as is, Brazil could face legal disputes that delay the implementation of its regulated betting framework.
The consensus among experts: clarity and stability are worth more than retroactive revenue.
Zona de Azar will continue following Brazil’s legislative process and fiscal developments shaping the iGaming industry.
🔗 Edited by: @_fonta www.zonadeazar.com