Senator Proposes Raising Betting Tax From 12 % To 27.5 % In Brazil

Brazil.– October 27, 2025 – www.zonadeazar.com A new bill introduced in Brazil’s Senate seeks to temporarily raise the tax on sports betting and online gaming from 12 % to 27.5 %, aiming to boost fiscal revenue during the 2026 budget cycle.

Overview

Senator Luiz Carlos Ferreira (PSD-GO) presented a proposal to increase betting taxes as part of a fiscal adjustment plan.
The measure is justified as a temporary step to offset declining government income and reinforce social programs, while the Ministry of Finance continues evaluating long-term taxation models for the regulated iGaming market.

Details / Context

The bill sets a one-year validity, with the possibility of renewal after economic assessment.
According to Senate estimates, the measure could add BRL 1.8 billion in annual tax revenue.

Industry stakeholders have warned that such an increase could drive players toward unlicensed offshore sites, undermining the regulated system established by Law 14.790/2023.
The proposal will be discussed in Senate committees before a plenary vote expected in December 2025.

Future Outlook

If approved, the new tax would take effect on January 1, 2026.
Experts predict it may reshape market dynamics, prompting consolidation among smaller operators and pushing major international brands to renegotiate margins.
For the Brazilian government, the challenge lies in balancing fiscal pressure with the need to maintain investment and player protection.

Key Subtopics

  • Economic: Revenue goals versus market sustainability.
  • Regulatory: Alignment with Law 14.790/2023’s framework.
  • Social: Funds allocated to healthcare and welfare programs.
  • Political: Rising tensions between industry and Senate committees.
  • Institutional: Coordination between the Treasury and SPA authorities.

🔗 Edited by: @_fonta www.zonadeazar.com

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