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A proposal to apply retroactive taxes on betting companies is gaining traction in Brazil’s Senate. The measure, originally suggested by Federal Revenue Secretary Robinson Barreirinhas during the CPI das Bets inquiry in March, has since attracted the support of opposition lawmakers and is now under review as a formal policy option.
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The plan is being framed as both a revenue tool and a political response. For the Finance Ministry, the projected BRL12.6bn ($2.25bn) would help relieve fiscal pressures. Senators, meanwhile, argue that part of the funds should support social initiatives. Senator Hiran Gonçalves has suggested that resources could “reimburse victims of frauds involving Brazil’s National Institute of Social Security (INSS).”
A Ministry of Finance working group is preparing to present a compliance model in September, though several options are already circulating. One idea would allow companies to pay 50% of the liability upfront and cover the remainder in installments.
Lawmakers maintain that betting firms operated in Brazil before regulation but did not contribute to tax revenues, justifying the retroactive approach. The Federal Revenue is also rolling out a compliance program to ensure steady collection from licensed operators going forward.
Industry critics, however, question whether taxing past activity could undermine market stability, discourage investment, or trigger legal challenges. Retroactivity remains one of the most contested aspects of the proposal.
At the same time, regulators are working on consumer protection measures, including a national self-exclusion tool for bettors. The dual track highlights how Brazil’s betting regulation agenda is balancing fiscal priorities with player safeguards.