Brazil Set to Debate Tax Hikes on Sports Betting

Congress in Brazil will officially begin discussions on Provisional Measure (MP) 1.303/2025 on Wednesday, August 6, with Finance Minister Fernando Haddad set to speak during the opening session. The measure includes a proposal to increase taxes on fixed-odds betting, adding to the government’s growing focus on regulating the gambling sector.

Good to know

• The proposal includes tax changes that directly affect online betting and digital assets.
• Minister Haddad has recently hinted at supporting a full ban on online betting.
• A final decision on the measure is expected before the end of the year.

MP 1.303 aims to reshape Brazil’s broader tax system. It introduces updates to the way financial assets, real estate, agribusiness operations, and investment funds are taxed. Foreign investors and digital financial products are also included in the proposed changes.

The measure is part of a wider plan by President Lula da Silva’s administration to simplify and tighten tax enforcement, particularly within the fast-growing digital economy. Betting platforms—especially online sportsbooks—have become a central part of that discussion.

While the measure doesn’t propose a ban on betting, Haddad’s recent public statements calling for one have added pressure to the debate. His comments suggest that, beyond taxation, there may be political appetite to go further in regulating or even removing betting platforms from the market.

Hearings throughout August will explore other aspects of MP 1.303, including changes to exempt asset categories, corporate profit taxes, and social program funding. The committee overseeing the process was formed in June and is tasked with clarifying tax standards around new sectors like fintech and online gambling.

The proposal also includes clauses on pension indexing, tax benefit limits, and compensation restrictions. Lawmakers are expected to vote on the full package by the end of the year.