The Senate of Brazil is set to deliver its decisive vote next week on whether to double the tax burden on online gambling “bets” licences and fintechs.
Under Bill No. 5,473/2025, the gross gaming revenue (GGR) tax on licensed betting operators would be raised from 12% to 24%, doubling the rate applied to Brazil’s recently regulated sports betting market.
The Bill’s modalities also increase the Social Contribution on Net Profit (CSLL) for fintechs active in Brazil from 9% to as high as 20%, depending on company size and commercial activity.
Originally scheduled for this Wednesday afternoon — the vote was postponed by the Senate’s Economic Affairs Committee (CAE) after the bill’s rapporteur, Senator Eduardo Braga (MDB-AM), was unable to attend the session. A further delay has been proposed by Committee Chair, Renan Calheiros who determined that representative needed a few more days to review items related to the Fintech taxes.
It’s a vote which marks the final opportunity for the administration of Finance Minister Fernando Haddad and President Luiz Inácio Lula da Silva to secure a tax rise on betting licences before the close of 2025.
Lula and Haddad maintain plans to raise at least R$35bn (circa €7bn) in surplus revenue to help plug the fiscal gap and support its welfare/social-spending ambitions – which carry extra significance ahead of Municipal Elections in 2026.
Earlier attempts to include the increase in the 2026 Federal Budget collapsed in October, after opposition parties in the Chamber of Deputies rejected last-minute amendments introduced by rapporteur Carlos Zarattini (PT-SP).
The setback reportedly left Lula and Haddad furious with members of their own Workers Party who were accused of mishandling key fiscal proposals and giving the opposition cause to mock the government’s stewardship of the 2026 Budget.
Although Haddad had no involvement in drafting the current Senate bill, he has accepted the higher rate on betting licences, signalling support for the 24% charge. The minister has previously stated that he is “no fan” of online gambling, describing the tax hike as a necessary step to preserve fiscal balance while maintaining relief for lower-income earners.
However, the Instituto Brasileiro de Jogo Responsável (IBJR) — the country’s leading gambling trade body representing operators such as Bet365, Betano, Betsson, Entain, and Flutter — has warned that the proposed tax increase could destabilise Brazil’s new betting regime, which has been in force for barely a year.
The IBJR argues that doubling the GGR rate would drive consumers back to unlicensed offshore sites, reversing progress made in channelisation and player protection since the 2024 regulatory framework was enacted.
It described the measure as an “unfair and short-sighted burden” on licensed operators who have already made significant investments in compliance, technology, and marketing to meet government standards.
Committee chair Renan Calheiros (MDB-AL) has urged senators to approve the bill by 31 December 2025, allowing implementation from 1 January 2026. Any delay, he warned, would defer enforcement until 2027, creating a “fiscal vacuum and budgetary imbalance.”
If passed under its terminative status, the bill will bypass the Senate plenary and move directly to the Chamber of Deputies, where further scrutiny is expected before it can become law.
