Brazil: Senate Approves Bill Raising Taxes on Bets and Fintechs

Brazil – December 3, 2025 – www.zonadeazar.com The Brazilian Senate’s Economic Affairs Committee (CAE) endorses the report by Senator Eduardo Braga, moving forward a bill that increases tax burdens for online betting operators and fintech/payment firms. The measure could reshape the fiscal landscape for the industry over the next years.

Overview

With 21 votes in favor and only one against, the committee approves the tax reform proposal. Since the bill is processed under “terminative” regime, it will proceed directly to the Chamber of Deputies.

Key changes:

• For betting companies, the GGR-based tax rises gradually from 12% to 15% in 2026–2027, reaching 18% starting in 2028.

• For fintechs and payment institutions, the CSLL charge increases from 9% to 12% in 2026–2027, then 15% in 2028. For capitalization, credit, financing and investment firms, CSLL goes from 15% to 17.5% in 2026 and 20% in 2028. Traditional banks and cooperatives remain unaffected.

Details and Context

The measure — known as Bill PL 5.473/2025 — emerges as a fiscal counterbalance after the recent broadening of income-tax exemptions for individuals earning up to 5,000 real monthly.

Lawmakers argue the tax hike is needed given the risks tied to digital payments and online betting: potential evasion, money-laundering and unfair competition from unlicensed operators.

Beyond taxes, the text enforces tougher regulatory requirements: stricter licensing conditions, compliance checks for owners and controllers, and a mandated removal of illegal online ads within 48 working hours when flagged by regulators.

Impact on the iGaming & Fintech Sector

The tax increase sends a mixed signal:

• It may shrink profit margins for legally operating betting companies, making their business models more challenging.

• It could push some operators and users toward unregulated platforms, undermining efforts to formalize and regulate the market.

• Fintechs with smaller scale or higher operating costs might struggle to stay competitive under heavier tax load.

Conversely, supporters argue the expected fiscal gains could offset government revenue losses and promote public welfare — part of the additional revenue is earmarked for social security, states and municipalities..

Outlook

With approval in the Senate committee, the bill moves to the Chamber of Deputies. If passed, the new tax regime would take effect starting in 2026, likely accelerating structural changes in Brazil’s regulated betting and fintech landscape.

Operators, providers and payment companies will need to adapt: optimizing efficiency, revising margins, reinforcing compliance, and possibly exiting marginal operations. The formal sector will likely shift toward stricter regulation, transparency and compliance.

The debate is just beginning, but the fiscal pressure on bets and fintechs already signals a new era.

🔗 Edited by: @_fonta www.zonadeazar.com