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The debate on how much betting operators should pay in taxes in Brazil is ever alive. Finance Minister Fernando Haddad confirmed that the Federal Government continues to support an 18% tax rate for licensed gaming and betting operators. During an interview on CNN Brasil, Haddad made it clear that even though Congress approved a 12% rate last year, the administration intends to restore the original figure.
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During the interview, Haddad said the proposal reflects the national fiscal strategy and the goal of collecting fair revenue from a rapidly expanding betting industry.
He said:
“In relation to operators, the Government proposal has always been 18%. We sent the bill in 2023 with this rate. Congress approved 12% and, in light of fiscal adjustment needs, we are once again requesting the 18% originally proposed. But Congress has the final say.”
The Ministry of Finance maintains that the higher rate would strengthen oversight of legal betting activity while ensuring fair contribution from licensed companies.
The bill is now under review by Senator Eduardo Braga, who has asked the Ministry of Finance to provide additional financial data before finalizing his report. Haddad confirmed that the ministry will submit the information soon.
He added that Senate President Davi Alcolumbre encouraged coordination with the Chamber of Deputies to prevent procedural disputes during the voting process. Haddad said:
“I believe the Senate may vote on the text next week, but before that, a consultation with the Chamber will be carried out, as requested by Senator Alcolumbre, to prevent misunderstandings.”
The push for an 18% operator rate forms part of a wider effort to increase government income without cutting public spending. Finance officials argue that a higher levy will promote fiscal stability while ensuring that companies active in the regulated market contribute in proportion to their earnings.
Economic observers in Brasília point out that the current 12% rate is among the lowest in Latin America and may not generate enough revenue to meet fiscal targets. Supporters of the higher rate say it would bring Brazil closer to European markets where online betting is taxed more heavily.
Industry executives are following the developments closely. Some operators claim a higher tax rate could limit promotions and reduce investment, while others believe stronger regulation is essential for a stable and trusted market.
The Ministry of Finance argues that the increase would strengthen consumer protection, reduce illegal gambling activity, and guarantee a fair contribution from all regulated operators.
If approved, the new rate could take effect early in 2026, solidifying Brazil as one of the most regulated betting markets in Latin America.
The Government continues to back an 18% rate, instead of the 12% approved by Congress last year.
Senator Eduardo Braga is in charge of analyzing the bill and preparing a report before the Senate vote.
Haddad said a vote may occur next week after coordination between the Senate and the Chamber of Deputies.
Officials argue that a stronger tax rate will boost fiscal revenue and ensure fair participation from betting operators in Brazil.