Government eyes doubling online gaming tax to 24% amid rising revenues
Brazil’s federal government collected around BRL 6.8 billion (USD 1.26 billion) in taxes from betting and gaming activities between January and September 2025, according to figures released by the Federal Revenue Service on October 23.
The total includes Gross Gaming Revenue (GGR) taxes from betting sites, along with other levies remitted by licensed operators across the sector.
September Records Strong Growth
The government earned roughly BRL 1.2 billion (USD 222 million) in taxes in September alone, reflecting the continued formalization of Brazil’s betting market. The Revenue Service attributed the uptick to recent regulatory changes that expanded the scope of taxable gaming activities and brought more operators into compliance.
Its latest report highlights both the strength of financial institutions supporting the industry and the rapid growth of regulated betting platforms, which have become a major driver of fiscal revenue.
Fiscal Debate and Regulatory Context
The release of these figures comes at a critical policy moment, as the government evaluates new ways to sustain tax collection following the expiration of Provisional Measure (MP) 1.303 earlier this month.
Originally intended to raise gambling taxes, MP 1.303 was later revised to include retroactive collection measures, but the Chamber of Deputies withdrew it from the legislative agenda on October 8, causing the measure to lapse.
Since then, pro-government legislators have proposed new frameworks to ensure tax stability and regulatory consistency across Brazil’s growing iGaming sector.
New Bill Proposes Doubling Tax Rate
On October 22, the Finance and Taxation Commission voted to fast-track Bill No. 5.076/2025, which proposes doubling the betting tax rate from 12% to 24% of GGR.
Introduced by Lindbergh Farias (PT-RJ), the bill aims to stabilize federal revenues and reinforce fiscal oversight of the online betting market. Supporters argue that an urgent review is necessary to avoid conflicting regulations and provide legal clarity for existing operators.
The urgency motion, backed by 34 deputies from both the ruling Workers’ Party (PT) and the opposition Liberal Party (PL), enables the bill to skip traditional committee debates and move directly to the Chamber’s plenary session for a vote.
Toward a Quick Decision
This expedited process reflects the government’s intent to maintain fiscal discipline while tightening control over Brazil’s rapidly expanding gaming sector.
Lawmakers continue to weigh the economic benefits of higher tax revenues against potential pressure on operators. If passed, the 24% GGR tax could double the industry’s contribution to the national treasury, making betting taxes one of Brazil’s largest sources of non-traditional revenue by 2026.
