Phased rise in gaming tax in Brazil to begin in 2026 under compromise proposal
Brazil’s tax rate on gross gaming revenue will be hiked in phases between 2026 and 2028.
Brazil.- The Senate’s Economic Affairs Committee (CAE) has endorsed a proposal to gradually raise the rate of gaming tax in Brazil. Under the proposal, the rate charged on gross gaming revenue (GGR) will rise from 12 per cent to 15 per cent in 2026 and 18 per cent by 2028.
The phased approach outlined in Bill 5,473/2025 is seen as a compromise after a previous proposal that would have doubled the tax rate to 24 per cent. President Luiz Inácio Lula da Silva and finance minister Fernando Haddad have backed the need for a rise in gambling tax to fund welfare initiatives, with Lula having assigned R$300bn for social programmes in 2026.
The amended proposal was drafted by senator Renan Calheiros (MDB-AL) and reported by Eduardo Braga (MDB-AM). It must still go to the Chamber of Deputies for analysis unless there is an appeal for a vote in the plenary.
The tax applies to the total amount collected by platforms, less the amount paid to bettors as prizes. This is the main tax applied to regulated betting in Brazil, and the increase is expected to put pressure on operating margins, especially for operators who are still structuring their entry into Brazil’s regulated online betting market, which was only launched at the start of this year.
The revenue will be allocated to social security, with priority given to health initiatives. Between 2026 and 2028, however, the federal government may transfer part of these resources to states, municipalities, and the Federal District, as a way to compensate for losses resulting from income tax exemptions for public servants.
New proposal for state lotteries
Meanwhile, federal deputy Fernando Marangoni has presented Bill No. 5,982/2025, which proposes a unified regulatory framework for state and municipal lotteries in Brazil. The draft proposal outlines rules on governance, licensing, integrity, technology, player protection and resource allocation for operations at the subnational level.
The Legal Framework for State and Municipal Lotteries aims to standardise the creation, operation, oversight and financing of regional lotteries with rules for supervision, financial transparency and the allocation of revenue. States and municipalities that already operate lotteries would have to adapt their operations to meet the national norms once the law takes effect.
