Lula signs law that raises the tax burden on betting houses
President Luiz Inácio Lula da Silva signed on Friday the 26th Complementary Law No. 224/2025, which establishes a progressive increase in the tax applied to the gross income of betting houses, raising the current rate from 12% to 15% starting in 2028. The regulation is already in effect and is part of the Government's fiscal package to strengthen revenue collection from 2026 onward.
The new legislation combines two central pillars: the gradual reduction of federal tax incentives and the tightening of third-party liability for those who participate, directly or indirectly, in irregular operations related to fixed-odds betting.
One of the most relevant points of the text is the expansion of the concept of joint liability. Financial institutions, payment service companies, and advertising firms may be held jointly responsible for owed taxes if they facilitate transactions or promote unauthorized operators, provided they have been previously notified by the competent authority. The regulation of this scheme will be handled by the Ministry of Finance, in coordination with the Secretariat of Prizes and Bets (SPA).
Gradual adjustments and increased allocation to health
For the years 2026 and 2027, the law foresees adjustments in the distribution of resources generated by the sector's taxation. The increase will be progressive and includes a gradual expansion of the portion allocated to financing health actions, in line with the Executive's social objectives.
End of automatic incentives
The regulation introduces structural changes to the federal tax benefit regime. From now on, any incentive granted to legal entities must include detailed estimates of budgetary impact, number of beneficiaries, performance targets, and a maximum validity period of five years. Benefits that are not evaluated or do not meet the established objectives cannot be extended.
Additionally, a general reduction of 10% is established in various tax incentives linked to taxes such as IRPJ, CSLL, PIS, Cofins, IPI, Import Tax, and employer contributions. Excluded from this cut are constitutional benefits, the Manaus Free Trade Zone, and social and educational programs considered strategic, such as Minha Casa Minha Vida and Prouni.
The law also sets a global limit for tax incentives. If the total volume exceeds 2% of the Gross Domestic Product, the granting of new benefits or the extension of existing ones will be blocked, unless fiscal compensation mechanisms are implemented throughout the validity period.
A tense relationship with the sector
Although the new law strengthens the Government's revenue collection scheme, President Lula has repeatedly expressed his discomfort with the growth of the online betting industry in Brazil.
In November, CAIXA chose to postpone the launch of its state sports betting platform, known as “Bet da Caixa,” in an attempt to avoid new fronts of political wear. The project planned to start operations in 2026 with an estimated revenue of R$ 2.5 billion.
The president has been especially critical of the social impact of gambling. In previous statements, he maintained that the State must address the problem from a public health perspective, pointing to cases of extreme indebtedness and asset loss associated with compulsive gambling. Although in the past he hinted at the possibility of ending the activity, the progress of regulation and the fiscal weight of the sector indicate that this scenario is increasingly distant.
The sanctioning of Complementary Law No. 224/2025 thus confirms a path of greater control, tax pressure, and shared responsibility in a market that continues to grow but under increasingly strict oversight.
Tags: Brasil, Brazil betting regulation, Brazil betting taxes