Proposal Targets 135 Operators
Brazil’s government is weighing retroactive tax charges on sports betting operators. This move could raise up to R$12.6 billion (US$2.3 billion). The proposal is under review by a joint working group from the Federal Revenue Service (RF) and the Ministry of Finance’s Prizes and Betting Secretariat (SPA). It would target 135 companies.
According to Games Magazine Brasil, the plan could allow installment payments rather than lump-sum collections. Brazil’s fixed-odds betting market was formally regulated in January 2025, with a 12% tax rate implemented in April.
Push for Strong Oversight
The Ministry of Finance confirmed the working group’s review but declined to give further details, citing tax confidentiality. The Federal Revenue’s 2025 Oversight Report labels betting oversight as “structural,” urging measures to distinguish between licensed and unlicensed operators.
Federal Revenue Secretary Robinson Barreirinhas has publicly supported retroactive taxation. He emphasized that firms active in Brazil before regulation still owe taxes on past profits and revenues.
“If there was a material presence here in Brazil and there was profit, they must pay income tax. If there was revenue, they must pay PIS/Cofins,” he said.
Higher Taxes on the Horizon
Online sports betting was legalized in 2018 under former president Michel Temer. However, it remained unregulated during Jair Bolsonaro’s term, allowing unlicensed operators to expand. Finance Minister Fernando Haddad claims firms avoided more than R$40 billion (US$7.35 billion) in taxes during that period.
The retroactive tax debate comes as Congress considers raising the betting tax rate from 12% to 18%. Government estimates suggest the increase could generate R$284.94 million (US$52.4 million) in 2025. It could also bring in R$1.7 billion (US$312 million) annually from 2026.
