Brazil’s regulated betting market generated BRL1.09 billion ($202.7 million) in tax revenue in October, according to the Federal Revenue Service.
This represented a 9.4% decline from September’s BRL1.21 billion total.
Despite the drop, year-to-date contributions reached BRL7.95 billion since the market’s regulation took effect on 1 January.
Proposed Tax Increase on Betting
The Brazilian government is considering doubling the tax rate on gross gaming revenue (GGR) for the regulated betting market.
Currently, the base tax rate is 12%, though operators face additional taxes, resulting in an overall rate exceeding 40%.
The Senate’s Economic Affairs Committee is scheduled to vote on bill PL 5,473/2025 on Wednesday, which proposes increasing the GGR tax to 24%.
If approved, the bill will move directly to the Chamber of Deputies unless an appeal triggers a Senate plenary vote.
The proposal previously faced delays after Chamber of Deputies President Hugo Motta indicated it would not gain sufficient support.
Government Push for Higher Gambling Taxes
With elections approaching in 2026, President Lula’s administration has signaled a commitment to increasing gambling taxes to meet fiscal targets.
A prior attempt to raise gambling taxes by 50% through a provisional measure failed, prompting renewed efforts to introduce higher rates.
“That’s the main reason that they struck back so fast, because it was embarrassing for them,” said Brazilian iGaming analyst Elvis Lourenço, managing partner at EX7 Partners.
He added, “This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”
Lourenço warned that doubling the current tax rate would be an “insane” decision and could threaten the viability of the regulated market.
