IBJR: Brazil's online gambling tax could exceed 12% GGR
The Brazilian Institute of Responsible Gaming (IBJR) published an infographic detailing the tax implications for the online gaming market in Brazil in light of recent legislative initiatives aimed at increasing taxation on gross gaming revenue (GGR).
According to the document, if Bill 5,076/2025 is approved, the rate applied to the GGR could double from 12% to 24%, a measure that was deemed urgent this Wednesday (22) by the Finance and Taxation Committee of the Chamber of Deputies.
Tax Reform and Combined Fiscal Pressure
The IBJR also warns that the enactment of the Tax Reform could significantly increase fiscal pressure on the sector. This reform includes the creation of two new levies: the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS), with an estimated combined rate of 28%.
If both taxes are added to a potential increase in the tax on GGR, the total burden for companies could reach 45.4%, placing Brazil among the countries with the highest fiscal pressure on online gaming globally.
Competitiveness and Risk of Illegal Market Expansion
The IBJR report emphasizes that this fiscal strategy contrasts with those applied in other international markets, where a moderate tax imposition has been key to reducing the size of the illegal market and strengthening the competitiveness of regulated operators.
According to data from the Federal Revenue Service (IRF), regulated platforms in Brazil collected R$ 6.85 billion in taxes through September 2025. However, the unregulated market — which still represents approximately 51% of total bets in the country — generates an estimated loss of R$ 10.8 billion annually in revenue.
The IBJR reaffirms that maintaining a balanced tax structure is essential to promote market formalization, attract investments, and guarantee competitive conditions for licensed operators.
Tags: Brasil, IBJR, taxes, online betting taxes