The data comes from the “Monthly Analysis – September 2025” report, which details the performance of revenues administered by the Treasury, including taxes such as IRPJ, CSLL, PIS/Pasep, COFINS, IOF, and CIDE.
According to the report, the surge reflects the effective implementation of the fixed-odds betting regulation, approved in December 2023, and the inclusion of the segment under the services category, which boosted overall federal tax collection.
Key highlights from the report:
- IRPJ and CSLL collections in the betting sector rose from R$ 17 million (US$3.1m) to R$ 1.257 billion (US$233m), an increase of 7,133%.
- PIS/Pasep and COFINS revenues jumped from R$ 12 million (US$2.2m) to R$ 1.623 billion (US$301m), up 13,765%.
- The “Federal Participation in Lottery and Fixed-Odds Betting Revenues” added another R$ 2.5 billion (US$464m) to government coffers.
The betting sector is part of the services industry, which grew 2.67% over the period, while retail activity saw a slight decline of 0.28%, according to IBGE data.
In September alone, the government collected R$ 1.7 billion (US$316m) from the betting market, compared to R$ 7 million (US$1.3m) in the same month of 2024 — an increase of more than 16,000%.
Claudemir Malaquias, a Federal Revenue specialist, noted that the spike is not related to higher tax rates but to new legal rules.
“The increase is significant but reflects a change in legislation, not a real rise in tax burden,” he explained.
Currently, betting companies are taxed at 12% of Gross Gaming Revenue (GGR), but Finance Minister Fernando Haddad plans to send a bill to Congress proposing an increase to up to 24%, now under discussion in the Finance and Taxation Committee.
Haddad argues that the new rate should “recover lost revenue without undermining market balance.”
Broader tax performance
The Treasury reported total tax and contribution revenues of R$ 1.518 trillion (US$282bn) from January to September, a real increase of 4.43% compared to 2024.
This marks the strongest tax performance since 2000, driven also by a 33.4% rise in IOF collection, which reached R$ 8.4 billion (US$1.5bn) in September.
'Bets' taxation and new proposals
Finance Minister Fernando Haddad also intends to submit to Congress the “Litígio Zero Bets” proposal, a Special Foreign Exchange and Tax Regularization Regime expected to generate R$ 5 billion (US$928m) in revenue.
The program would allow repatriation of funds sent abroad before December 31, 2024, prior to full market regulation. It includes a 15% income tax on capital gains and a 100% fine on the calculated tax.
The plan has drawn criticism from industry representatives. Plínio Lemos Jorge, president of the National Association of Gaming and Lotteries (ANJL), called it a “revenue-driven overreach”, warning against retroactive taxation.
“The market needs stability, not tax surprises,” he said.
Despite criticism, the government sees the measure as a way to offset revenue losses following the expiration of the Provisional Measure that would have increased betting taxes from 12% to 18%.
Source: GMB
