Sports News
| Published On Oct 1, 2025 2:31 am CEST | By Daniel Li

Brazil Considers Raising Betting Tax to 18 Percent Under MP 1.303

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Brazil’s Congress has returned to a debate that could reshape the betting and digital finance landscape. Lawmakers are reviewing Provisional Measure (MP) 1.303/2025, which introduces new tax rules for financial investments, virtual assets, and fixed-odds betting operators.


Good to know

  • The proposal raises the betting tax from 12% to 18% of gross gaming revenue.
  • Revenue from the increase will support health programs under Brazil’s social security system.
  • The MP also strengthens enforcement against illegal operators and advertisers.

At the center of the discussion is a 6% tax hike for licensed betting companies, lifting the levy on gross gaming revenue (GGR) from 12% to 18%. According to the Ministry of Finance, the additional funds will be allocated primarily to public health initiatives. The existing 12% revenue share will continue to flow to ministries such as Education, Tourism, and Public Security.

Beyond taxation, the report expands enforcement requirements. Internet service providers would be obliged to establish direct channels with the Ministry of Finance, allowing faster implementation of blocking orders against unlicensed sites. Financial institutions processing payments for unauthorized operators could face sanctions, while advertisers promoting illegal platforms would be penalized as well.

The mixed congressional committee is scheduled to vote on the report on September 30. If approved, the measure moves to the Chambers of Deputies and the Senate, with a final decision required before October 8.

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The Brazilian Institute on Responsible Gaming (IBJR), representing licensed operators, has criticized the planned increase. The association argues that heavier taxation could destabilize the regulated market and unintentionally drive bettors toward offshore platforms that do not follow consumer protection rules.

Related Integrity Efforts

The discussion around MP 1.303/2025 comes as Brazil has also launched Apita Cidadão (Citizen Whistle), a digital platform allowing anonymous reporting of match-fixing cases. The tool forwards reports directly to federal police, adding another layer to Brazil’s sports integrity strategy.

Daniel Li

A day trader in cryptocurrencies and avid sports bettor himself, Daniel decided to join the team and share his expertise with the iGaming.org audience. Areas of interest are global crypto regulations and the adoption of cryptocurrency use in the world. Daniel loves to work hard and write “how to guides” related to sports betting to share his take on various topics.