Government Calls for New Tax Law
The Brazilian government has recently called for a new law aimed at taxing betting operators, a decision that follows the sector's exclusion from a recent anti-counterfeiting bill. This legislative push underscores the government's ongoing efforts to refine the taxation and regulation of the burgeoning betting market in Brazil. The Minister of Justice, Wellington César Lima, has been noted in connection with this development.
Existing Regulatory Framework
This latest call for legislation comes within an already established regulatory landscape. On December 30, 2023, President Luiz Inácio Lula da Silva sanctioned Law No. 14,790, which regulates fixed-odds betting on sports and online games, amending Law No. 13,756/2018. This law officially launched Brazil's regulated betting and online gambling market on January 1, 2025. The Secretariat of Prizes and Bets (SPA), operating under the Ministry of Finance, serves as the central authority for regulating gambling, overseeing licensing, taxation, and anti-money laundering measures.
Proposed Tax Increases and Revenue Goals
Under the current framework, betting operators are subject to a 12% tax on their Gross Gaming Revenue (GGR), which is defined as the total amount of bets received minus the prizes paid out. This revenue is earmarked for social purposes. Additionally, operators face corporate taxes. For players, net winnings from fixed-odds and fantasy sports bets are subject to a 15% Personal Income Tax (IRPF), deducted at source by licensed operators for winnings exceeding BRL 2,824 (approximately €530).
Recent legislative discussions indicate a move towards increasing these rates. In December 2025, the Senate approved a bill proposing to raise the total taxation on sports betting income from 12% to 18%. Concurrently, the Chamber of Deputies approved a bill that would see the tax on fixed-odds bets gradually increase to 15% by 2028. The federal government estimates these measures could generate approximately R$18 billion in revenue over three years.
Licensing and Compliance Requirements
To operate legally, companies must be incorporated under Brazilian law with headquarters in the national territory, maintain a minimum share capital (e.g., BRL 30 million), and obtain a license from the Ministry of Finance's SPA. These licenses, costing up to BRL 30 million, are valid for five years and permit the use of up to three commercial brands. Unlicensed operators risk having their websites blocked and facing substantial fines.
In a move to bolster financial integrity, the SPA mandated all authorized betting operators to submit their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) policies by March 17, 2025. This requirement aligns with Law No. 14,790/2023 and SPA/MF Ordinance No. 1,143/2024, emphasizing Brazil's commitment to a transparent and regulated gambling industry.
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