The Committee of Economic Affairs (CAE) has passed a proposal to raise taxes on betting licences from 12% to 18% of gross gaming revenue. The measures will be graduated, with the rate rising to 15% by 2027 before reaching 18% a year later.
Although a blow for operators seeking to secure their footing within the burgeoning landscape, the CAE adjusted a previous proposal from the government to double taxes to 24% – which failed in Congress in October.
Welfare spending
The changes, combined with tax reforms for fintech services, could raise as much as R$5bn in federal revenue from 2026 onwards, according to economic projections.
President Luiz Inácio Lula da Silva is targeting the dual tax reforms to help finance the Brazilian Government’s R$300bn in welfare spending in 2026, in what is described as “the largest social-investment package in Brazil’s history”.
Similar optics provided a challenge for the UK gambling industry, as in the run up to the UK budget, advocates for increased tax linked the potential revenue boost with reforms targeted at combating child poverty.
Though not directly linked by Chancellor Rachel Reeves, UK remote gaming duty will be hiked to 40% in April 2026, while child benefit frameworks have been reformed within her mandate.
It elevated what was already a tough landscape for the gambling industry in terms of making the case against significant tax hikes.
Ongoing reform
Operators will be hopeful that a degree of stability in the Brazilian market is found in 2026, as 2025 has marked a somewhat chaotic period.
Since the market opened on 1 January, operators have been forced to adapt to new restrictions on bonuses as tighter frameworks around incentives and regulations related to ensuring welfare recipients can’t use funds for gambling.
This bill related to welfare funds proved controversial upon its introduction following the publication of SPA/MF Ordinance No. 2,217/2025, recipients of Bolsa Familia and the Continuous Cash Benefit are among groups banned from taking part in fixed-odds sports betting.
In order to ensure the implementation of the guidance, the SPA also issued Normative Instruction No. 22/2025, which sets out procedures that betting operators must follow to ensure compliance.
According to the new rules, companies must consult the Betting Management System (Sigap) to verify whether a user is included in the database of beneficiaries during customer registration, and at the first login of each day.
It outlined that operators must ensure that players are blocked if they are registered, with any deposits also being returned to them.
Speaking at the time of the implementation of the rules, Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance, stated: “To ensure compliance with the Supreme Court’s ruling, it was necessary to develop a robust technical tool, carefully ensuring that the measure guaranteed the protection of the rights involved. Protecting citizens, their security, their rights, and their personal data are always objectives of the Brazilian Government.”
The Ministry of Finance stressed that recipients do not risk having their benefits suspended if they are found to be accessing betting sites, and it is the responsibility of operators to stop this from happening.
Meanwhile, regulatory gaps, such as the creation of a federal self-exclusion register and a dedicated bill to govern online gambling advertising, remain to be determined in 2026.
The bill to increase taxes will now advance to the Chamber of Deputies, before heading to the lower house for further committee analysis. Any amendments will return to the Senate for confirmation.
