Brazil Betting Operators Say Tax Proposal Is Ill-Timed

Brazil’s National Association of Games and Lotteries (ANJL) has strongly opposed Finance Minister Fernando Haddad’s recent defense of higher betting taxes, calling his comments both “technically flawed and entirely ill-timed.”

Good to Know

• Brazil’s current betting tax structure was approved by Congress in 2023 after months of debate.
• Each licensed operator pays BRL 30 million for a five-year licence and faces multiple layers of taxation.
• ANJL argues that higher taxes would push players toward unlicensed platforms and hurt state revenues.

During a Senate hearing, Minister Haddad described the government’s plan to raise taxes on the betting sector as “fair and balanced,” saying the measure aimed to reduce privileges by targeting “billionaires, banks, and bets.”

ANJL issued a statement reaffirming its commitment to dialogue with the Federal Government but argued that the proposed tax increase would damage the sustainability of Brazil’s regulated market. The group warned that heavier tax burdens could undermine licensed operators, make compliance less attractive, and ultimately cut into total government income.

The association also addressed claims that operators currently pay only 12% in taxes, clarifying that this figure refers to the gross gaming revenue (GGR) rate applied after prize payouts. Beyond that, operators already shoulder a long list of obligations: a 25% corporate income tax, a 9% social contribution tax, inspection fees of up to 9.25%, social security contributions, and municipal service taxes ranging from 2% to 5%.

ANJL stressed that the existing model was carefully negotiated and approved by Congress last year. More than 80 licensed operators have already entered the market under these conditions, paying BRL 30 million (about USD 5.5 million) each for five-year licences.