Senate approves new tax increase for betting houses in Brazil
The Brazilian Senate gave the green light to a new tax modification that directly impacts the online betting sector. On the night of Wednesday the 17th, the Plenary approved Complementary Bill 128/2025, which reduces federal tax benefits and, at the same time, progressively increases the tax burden applied to betting houses and fintechs.
The proposal was approved with broad support, 62 votes in favor and only 6 against, and now awaits presidential sanction to come into effect. The text is part of the package of measures promoted by the Executive aimed at strengthening revenue collection and ensuring the balance of the 2026 Budget.
The bill had Senator Randolfe Rodrigues (PT-AP), government leader in Congress, as its rapporteur, who defended the initiative in the chamber by pointing out the need to periodically review the tax incentives granted by the State. According to him, the measure aims to improve transparency, strengthen control over tax expenditure, and reduce distortions that, in his view, contribute to widening social inequalities.
Rodrigues stated that the proposal seeks to “advance towards greater fiscal responsibility,” emphasizing that benefits granted without continuous evaluation generate significant losses for public accounts. In this regard, he highlighted that the bill not only reduces incentives but also establishes clearer criteria for monitoring and control.
Direct impact on the betting sector
One of the central points of the approved text is the stepped increase in taxation on betting houses. According to the new scheme, the rate applied to the sector will rise from the current 12 percent to 13 percent in 2026, increase to 14 percent in 2027, and reach 15 percent in 2028.
The additional revenue derived from this increase will be distributed equally between social security and the health system, as established in the bill. The government considers this adjustment as one of the key pieces to close the fiscal accounts for the next fiscal year.
The text also introduces a tightening of oversight mechanisms. In addition to the operators themselves, other actors linked to the value chain may be held jointly liable for the corresponding taxes. These include individuals or legal entities that promote unauthorized bets and financial or payment entities that maintain commercial relationships with irregular operators, even after having received formal notification.
With this approval, the betting sector adds a new chapter to a scenario of growing tax pressure in Brazil, in a context where market regulation advances in parallel with greater fiscal and budgetary control by the State.
Tags: Brasil, betting regulation, online betting Brazil