Lula tough on iGaming: confirms increased tax in Brazil

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Lula tough on iGaming: confirms increased tax in Brazil

The regulatory landscape in Brazil, although already formalized, continues to navigate a terrain of high political sensitivity. President Luiz Inácio Lula da Silva has once again placed the online betting sector at the center of his criticisms, linking the industry's expansion to social risks and advocating for more aggressive state oversight both in taxation and operations.

During his speech at the Mint, Lula compared the current dynamics of digital platforms with those of physical casinos, banned in the country since the 1940s, warning about the ease of access for minors and the omnipresence of advertising in professional football.

The Central Bank as the enforcement arm of oversight

A key point of the speech was the explicit support for the Central Bank of Brazil (BCB). In the presence of its president, Gabriel Galípolo, Lula highlighted the monetary authority's effort to ensure that the sector complies with its tax obligations.

Although the Prizes and Betting Secretariat (SPA) of the Ministry of Finance is the direct regulatory body, the role of the Central Bank is critical on two fronts that concern the Planalto:

  1. Transactional flows: The control of foreign exchange and prize payments.
  2. Crime prevention: Oversight against money laundering and tax evasion.

Fiscal roadmap: The path towards 15% GGR

The presidential rhetoric has recent legal backing. At the end of 2025, the Executive sanctioned Complementary Law No. 224, which modifies the tax burden on Gross Gaming Revenue (GGR). This legal framework establishes a graduated increase scheme that operators must closely monitor:

This increase aims to balance public accounts in a market that is already positioned among the five most important worldwide in iGaming transaction volume.

Uncertainty and industry reaction

Lula’s recurring stance creates an atmosphere of ambivalence. On one hand, the industry celebrates the legal certainty provided by the regulation; on the other, the constant attacks from the country’s highest authority sow doubts about future restrictions on advertising or new administrative burdens.

From the private sector, it is argued that the Brazilian market today operates under one of the strictest compliance frameworks on the continent and that its financial contribution is vital for the support of national sports. However, for international investors, the challenge in 2026 will be to navigate between the commercial success of the Brazilian market and the political narrative of a government that maintains a historically cautious view towards the rent-seeking monopoly of gambling.

Tags: Brasil, online betting Brazil, Brazil betting taxes