Provisional Measure 1,303/2025 also reduces expenses and increases federal government revenue, including through other taxes such as the CSLL (Social Contribution on Net Profit).
This initiative was the federal government’s second attempt to balance public accounts after the negative reaction from lawmakers and some productive sectors to two presidential decrees published in May (12,466/2025 and 12,467/2025), which increased the IOF (Tax on Financial Transactions) without effective spending cuts by the Union.
The Provisional Measure was published on June 11, along with a new presidential decree (Decree 12,499/2025). At the end of the same month, the National Congress overturned all three decrees and reinstated the previous IOF rules.
Under the Provisional Measure, taxation on betting changes from the current 12% on GGR (Gross Gaming Revenue), as defined in Law 14,790, to 18%.
Industry representative organizations state that with the heavy tax burden imposed on the sector, many companies may leave Brazil, as the increase would force sports betting and online gaming operators to pay over 55% in total taxes to continue operating.
The major risk of this tax hike, in addition to the departure of several operators from the country, is the competition with illegal betting websites, which still account for around 50% of the market. “With unfair competition from unregulated operators who don’t pay taxes, operating in Brazil becomes unfeasible,” the organizations warn.
The Provisional Measure is currently in force and, unless overturned by the National Congress, starting October 1st — due to the 90-day waiting period stipulated by the MP — sports betting and online gaming operators will be required to pay the 18% rate to the public treasury.
With nearly 100 companies authorized by the Secretariat of Prizes and Betting to operate around 210 sports betting and online gaming websites, the sector is anxious about the future of the activity in the face of such legal — and now fiscal — uncertainty.
Source: GMB
