Brazil Considers Doubling Online Betting Tax Rate
The Brazilian federal government has reported robust revenue growth from the nation’s betting and gaming sector, collecting around BRL 6.8 billion (USD 1.26 billion) from January through September 2025, according to figures released by the Federal Revenue Service on October 23. The total includes not only Gross Gaming Revenue (GGR) taxes from online betting operators but also other levies contributed by licensed industry participants.
Strong September Performance
September alone generated an estimated BRL 1.2 billion (USD 222 million) in federal taxes, underlining the sector’s growing fiscal importance. Officials attributed this surge to recent legislative reforms that expanded the taxation and regulatory oversight of online gaming platforms, as well as strong contributions from financial intermediaries supporting the industry.
The detailed report provides a granular view of revenue streams, highlighting the formalization of Brazil’s licensed gaming market as regulatory measures take effect.
Policy and Fiscal Debate
These figures arrive amid an ongoing debate in Brasília over the future of gambling taxation. Following the expiry of Provisional Measure (MP) 1.303, which initially aimed to raise taxes on operators but later considered retroactive collections, lawmakers have explored alternative paths to secure federal revenue. MP 1.303 lapsed after the Chamber of Deputies removed it from the legislative agenda on October 8.
In its wake, legislators aligned with the government are pushing new measures to ensure fiscal stability and legal clarity within the rapidly expanding betting sector.
Bill No. 5.076/2025: Doubling Online Betting Tax
On October 22, the Finance and Taxation Commission of the Chamber of Deputies approved an urgent motion to advance Bill No. 5.076/2025, which proposes raising the online betting tax from 12% to 24% of GGR.
Introduced by PT party leader Lindbergh Farias (RJ), the bill seeks to stabilize federal revenues while maintaining a clear regulatory framework for the online gambling industry. The urgency of the motion, supported by 34 deputies from both the ruling Workers’ Party (PT) and opposition Liberal Party (PL), allows the proposal to bypass some standard legislative procedures.
According to supporters, rapid consideration is critical to prevent rule duplication and provide certainty for operators navigating Brazil’s evolving legal landscape.
Next Steps
With the urgent motion approved, the bill will move directly to the Board of Directors of the Chamber and could be scheduled for a plenary vote without prior committee deliberation. This procedural shortcut reflects a determined push by lawmakers to strengthen fiscal oversight and regulate the fast-growing iGaming sector efficiently.
If passed, the proposed 24% GGR tax would effectively double the federal contribution from the industry, positioning betting and gaming as one of Brazil’s largest sources of alternative revenue in 2026. Lawmakers now face the delicate balance of maximizing tax intake while maintaining a sustainable environment for a sector that has quickly become a key driver of economic growth.
