Brazil's Senate Committee to Vote on Doubling Betting Tax to 24%

Key Vote Scheduled for Betting Tax Hike

Brazil's Senate Economic Affairs Committee (CAE) is scheduled to vote on Wednesday, November 26, 2025, on a proposal to significantly increase the tax rate on gross gaming revenue (GGR) for betting operators. Bill PL 5,473/2025 seeks to double the current tax from 12% to 24%, a move that could reshape the financial landscape for the country's rapidly expanding regulated betting market.

The proposal, authored by Senator Renan Calheiros (MDB-AL), who also chairs the CAE, is part of a broader legislative effort. It complements Bill 1,087/2025, which aims to exempt individuals earning up to R$5,000 per month from income tax while increasing taxation on higher incomes. The rapporteur for PL 5,473/2025 is Senator Eduardo Braga (MDB-AM), who is currently redrafting his report following earlier postponements and requests for further review.

Background and Rationale for the Increase

The push for a higher betting tax comes amid the Brazilian government's efforts to meet fiscal targets and generate additional revenue for public services. Proponents of the bill argue that the increase is justified by the substantial growth of Brazil's betting market, which a 2023 Comscore study ranked among the largest globally, behind only the United States and the United Kingdom. The bill also highlights social and economic concerns associated with the industry, including gambling addiction and debt, suggesting that higher taxation could help mitigate these issues.

If approved, the revenue generated from the increased tax rate would be allocated to various public sectors. According to the proposal, half of the new tax revenue would be directed towards:

• Social security
• Public health programs

The remaining portion would be distributed to other areas, including culture and sports. This allocation aims to align tax revenue with the growth of the betting market while addressing critical public funding needs.

Legislative Challenges and Industry Concerns

The path to increasing the betting tax has not been without obstacles. A previous attempt by the government to raise the tax rate from 12% to 18% through Provisional Measure 1,303/2025 failed earlier in the year. The current Bill PL 5,473/2025 has also seen its vote postponed multiple times by the CAE, including a cancellation of a scheduled vote on November 18, 2025, due to a lack of agreement and concerns about its reception in the Chamber of Deputies.

The proposal has drawn significant debate, with some lawmakers and industry analysts expressing concerns that a substantial tax hike could inadvertently push operators towards the unregulated 'gray market'. Senator Braga acknowledged that raising the tax burden would face 'strong resistance' from the betting lobby. Critics argue that punishing legal operators might undermine the progress made in regulating the sector and could lead to a decrease in overall tax collection if businesses are driven underground. Despite these concerns, the government, particularly under President Luiz Inácio Lula da Silva's administration, remains determined to increase gambling taxation as part of its broader economic agenda.