Bill 5.473/2025, authored by the president of the Economic Affairs Committee, Senator Renan Calheiros (MDB-AL), proposed increasing the taxation of betting from 12% to 24% on the GGR (Gross Revenue Guarantee). Last week, the rapporteur, Senator Eduardo Braga (MDB-AM), proposed a reduction to 18%, defining a phased increase.
With this measure, to be sent for voting in the Chamber of Deputies, sports betting and online gaming companies will be taxed at 15% in 2026 and 2027, contributing 18% from 2028 onwards.
The new revenue should be directed to social security, with priority given to actions in the health area. Exceptionally, between 2026 and 2028, the Union may transfer part of the resources to states, the Federal District, and municipalities to compensate for losses resulting from exemptions from Personal Income Tax on the income of civil servants.
The text approved by the CAE (Committee on Economic Affairs) also increases taxation on the profits of fintechs, companies that offer digital banking and financial services. It also increases the Income Tax rate on the distribution of Interest on Equity.
With this, the Economic Affairs Committee partially recovers what the government had proposed in the provisional measure that replaced the increase in the Tax on Financial Operations (IOF) and increased government revenue to balance the accounts. The provisional measure foresaw an increase in the contribution of betting companies to 18%.
In addition, the report creates mechanisms to combat illegal betting houses that continue to operate without authorization from the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance.
Among the measures, the report determines that the government must adopt effective procedures to take down illegal websites and demand information from payment institutions and financial institutions about transactions with irregular companies.
Shortly after the approval, the Brazilian Institute of Responsible Gaming (IBJR), which represents 75% of Brazilian betting companies, spoke out again on the subject, praising the CAE's decision to strengthen the fight against illegal gambling, but criticizing the tax increase for the sector.
The IBJR said that raising the tax burden on betting companies operating under the regulation of the Secretariat of Prizes and Betting does not strengthen the newly regulated sector. "On the contrary: it encourages the growth of the clandestine market, reduces the competitiveness of licensed companies and, ultimately, puts the consumer at risk."
As the vote was final, the proposal will now be discussed and voted on in the Chamber of Deputies and, if approved without changes, will be sent to President Lula for sanction.
Source: GMB
