Brazil redefines the tax burden on betting and adjusts tax incentives
The Brazilian Congress advanced to a new stage of its fiscal agenda by approving in the Chamber of Deputies a package of measures that gradually increases taxes applied to online betting houses and reduces existing tax benefits. The initiative is part of the Executive's strategy to strengthen revenue collection and maintain the balance of public accounts starting in 2026.
The bill establishes a stepped increase in taxation on fixed-odds betting platforms. The rate, which is currently set at 12 percent of the gross gaming revenue, will rise to 13 percent in 2026, increase to 14 percent in 2027, and reach 15 percent in the following years. Unlike the current scheme, the new model broadens the allocation of resources, explicitly including social security and the health system as beneficiaries of the revenue.
Advertising, control, and joint liability
One of the most sensitive points of the approved text is the strengthening of control over betting advertising. The regulation stipulates that those who disseminate or promote unauthorized platforms, whether individuals or legal entities, may be held jointly liable for the taxes associated with that activity.
The scope of joint liability also extends to the financial system. Banks, fintechs, and payment institutions must adopt restrictive measures once notified by the competent authority, being prevented from processing transactions destined for operators who do not have formal authorization to operate in the regulated market.
Fiscal adjustments beyond gambling
The bill is not limited to the betting sector. The approved text introduces cuts of approximately 10 percent in various federal tax incentives and modifies the taxation of Interest on Equity. Starting January 1, 2026, the withholding on this instrument will rise to 17.5 percent.
A progressive increase of the Social Contribution on Net Profit is also foreseen for payment institutions and fintechs, starting at 17.5 percent and reaching 20 percent in 2028. According to estimates presented during the parliamentary debate, these changes could contribute more than R$4 billion additional to public coffers in the coming years.
Key for the 2026 budget
With 310 votes in favor and 85 against, the Chamber of Deputies gave the green light to a proposal that the government considers central to closing the 2026 budget design. The bill aligns with Constitutional Amendment 109, which imposes a ceiling on federal tax benefits until 2029.
After its approval in the Chamber of Deputies, the text was sent to the Federal Senate, where it will be analyzed again. There, the debate will once again bring to the table the delicate balance between tax pressure, the sustainability of the regulated market, and the State’s need to expand its financing capacity in a challenging economic context.
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