Brazil Fast-Tracks Bill to Raise Online Betting Tax to 24 Percent

Brazil’s Finance and Taxation Committee (CFT) has approved an urgent motion to accelerate the bill that would raise taxes on online betting operators from 12% to 24%, a major step in the Government’s fiscal recovery plan. The move allows the proposal to bypass other committees and proceed directly to a floor vote in the Chamber of Deputies.

Good to Know

• The proposed bill doubles the betting tax from 12% to 24%.
• Half of new tax revenue will fund public health programs.
• The urgency motion received 34 signatures from multiple parties.

CFT President Rogério Correia confirmed the urgency request was a calculated move. “We’ve gathered 34 signatures from members of all parties, which shows the strength of this debate,” he said. Under committee rules, only two bills per year can receive this expedited treatment.

The proposal, authored by Deputy Lindbergh Farias, aims to amend Brazil’s existing fixed-odds betting law, doubling the public share of gross gaming revenue (GGR) to 24%, while allowing operators to retain 76% for operational expenses.

According to the plan, the additional revenue will be split evenly — 12% to public health initiatives and 12% to other designated social programs.

Farias defended the tax hike by pointing to global benchmarks. “In France, it’s 33%, in Italy 20%. Here, we can go much further,” he said, arguing that Brazil’s current 12% rate remains well below international standards for regulated betting markets.

The lawmaker and his party see the increase as both a fiscal and social necessity — a way to boost federal income while addressing gambling-related risks such as debt and addiction among vulnerable groups.

Finance Minister Fernando Haddad has confirmed that the betting tax proposal is part of a wider fiscal reform package designed to raise government revenue. Two new bills are expected to reach Congress soon — one focusing on taxing high-income earners, fintechs, and betting platforms, and another aimed at tightening public spending.

The betting sector, legalized under Brazil’s fixed-odds framework in 2023, has quickly become a major contributor to national revenue. Policymakers now see higher taxation as key to sustaining social programs without expanding debt.

What Is Next

With the urgency motion approved, the final decision now rests with Chamber President Hugo Motta, who is expected to schedule a floor vote in the coming days.

If passed, the new rate would take effect within months, potentially reshaping the economics of Brazil’s rapidly growing online betting market and setting a new benchmark for taxation in Latin America’s regulated gaming landscape.

FAQ

What does the new bill propose?

It would increase the online betting tax rate from 12% to 24%, doubling the public revenue share.

Where will the additional funds go?

Half will be directed to public health programs, and half to social initiatives designated by the Government.

Why was urgency granted?

To allow the bill to skip further committee review and move straight to a floor vote.

When will the Chamber vote take place?

Chamber President Hugo Motta is expected to schedule the floor vote shortly.