Betting sector wants 15% tax and retroactive collection in Brazil
The debate over the online gambling tax burden in Brazil has entered a decisive phase. Representatives from the main betting companies and sector associations are holding talks with leaders of Congress and the federal government seeking to modify the bill that raises the tax on gross gaming revenue (GGR) from 12% to 24%.
According to the newspaper Folha de S. Paulo, the sector is trying to agree on an intermediate rate of 15%, considered more sustainable for regulated operations. In exchange, companies would be willing to participate in a retroactive collection program to regularize the taxation of bets placed before the law takes effect.
A business source quoted by the media estimated that this measure could generate immediate revenue of around BRL 12.5 billion (USD 2.333 billion) for the National Treasury, offering temporary fiscal relief to the government in its effort to balance public accounts.
Concern about the impact on the legal market
Betting companies warn that a sharp increase in the tax burden could harm the competitiveness of licensed companies and strengthen the illegal market, which already accounts for between 41% and 51% of operations, according to a study by the Brazilian Institute of Responsible Gambling (IBJR) published in June.
“The risk is that an excessive tax will push players towards unregulated platforms, reducing revenue and weakening responsible gambling control policies,” the institute noted.
In this regard, operators insist that an appropriate fiscal balance is essential to ensure the sustainability of the regulated model and maintain foreign investment in the country.
Fiscal and political context
The Ministry of Finance, headed by Fernando Haddad, supports the tax increase as part of a fiscal package designed to compensate for the recent expansion of the income tax exemption for workers earning up to BRL 5,000 (USD 933) per month.
The executive seeks to recover lost revenue through new contributions from betting companies, banks, and fintechs.
The bill, presented by Senator Renan Calheiros (MDB-AL) with Eduardo Braga as rapporteur, is currently in the Senate Economic Affairs Committee (CAE), where its vote is scheduled for November.
However, according to sources cited by CNN Brasil, there are not yet enough votes for its approval, forcing the Ministry of Finance to consider adjustments to the text, especially concerning fintechs, one of the sectors most reluctant to the increase in the net income contribution tax (CSLL).
What lies ahead
If the CAE approves the bill, it will go directly to the Chamber of Deputies, where the government hopes to obtain greater political consensus. Meanwhile, negotiations with the gambling industry and financial representatives continue in search of a balance between revenue, competitiveness, and fiscal sustainability.
If an agreement around the 15% rate and retroactive payment is reached, Brazil could immediately collect a record amount without affecting the structure of the legal market, while consolidating its regulatory framework as one of the most robust and attractive in Latin America.
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