Brazilian Congress Postpones Crucial Sports Betting Tax Vote to October 2nd

Vote on Sports Betting Tax Hike Rescheduled

The Brazilian Congress has postponed a critical vote on legislation that seeks to increase taxes on the sports betting industry. Originally slated for Tuesday, September 30th, the vote on Provisional Measure (MP) 1.303/2025 has been rescheduled for Thursday, October 2nd. This measure proposes to raise the Gross Gaming Revenue (GGR) tax rate for betting companies from the current 12% to 18%.

Details of Provisional Measure 1.303/2025

Provisional Measure 1.303/2025, introduced in June 2025, is a comprehensive legislative package that also includes new taxation rules for financial investments and virtual assets. The proposed 6% increase in the GGR tax rate for sports betting operators is a 50% hike from the existing rate. According to the Ministry of Finance, the additional revenue generated from this increase is primarily intended to fund health initiatives within the country's social security system. The remaining 12% of the GGR will continue to be distributed among various national ministries, including Education, Tourism, and Public Security. Finance Minister Fernando Haddad has publicly defended the proposed tax hike, framing it as a necessary step to balance fiscal responsibility with regulatory oversight and generate revenue without increasing the Tax on Financial Operations (IOF). The legislation's rapporteur is Federal Deputy Carlos Zarattini.

Industry Concerns and Opposition

The proposed tax increase has met with significant criticism from within the sports betting industry. Organizations such as the Brazilian Institute on Responsible Gaming (IBJR), which represents licensed operators, have voiced strong opposition. They argue that raising taxes could destabilize the market, discourage investment, and potentially drive bettors towards unregulated, unlicensed platforms. Industry experts warn that the current tax burden, which includes a 12% GGR tax, concession fees, and other corporate taxes, already totals approximately 36% of revenue. Some fear that the additional 6% could make operations unviable for many companies that have recently invested in Brazil's newly regulated market.

Legislative Timeline and Urgency

The Provisional Measure operates under a strict timeline, requiring congressional approval by October 8, 2025, to prevent it from lapsing. The mixed committee responsible for reviewing MP 1.303/2025 was initially scheduled to vote on the report on September 30th before it was postponed. If approved by the committee, the measure will then proceed to the full Chamber of Deputies and the Senate for further consideration and final approval. The urgency of the vote underscores the government's push to secure new revenue streams and the industry's anxiety over the potential impact of the revised tax structure.