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Brazil is taking a fresh approach to balancing its booming betting market with broader national interests. Lawmakers have scrapped a planned tax hike on sports betting while pushing new measures that connect gaming revenue to digital security and child welfare programs.
Good to Know
Deputy Carlos Zarattini presented the latest version of the provisional measure, confirming that the betting tax increase initially proposed by the Ministry of Finance was officially withdrawn. The ministry had wanted to lift the rate on gross gaming revenue—from 12% to 18%—as part of a plan to balance adjustments in the national Financial Operations Tax.
Zarattini’s decision follows weeks of debate between government officials and congressional leaders. The Finance Ministry had forecast up to BR20 billion in betting-related revenue by 2026, but removing the tax hike will cut projections by roughly BR3 billion. Still, the deputy insisted the decision was necessary to maintain fairness across industries while addressing the growing unregulated betting market.
At the same time, the revised text adds teeth to enforcement against offshore platforms. It introduces a Special Regime for Regularisation of Exchange and Tax Assets, which allows individuals and companies to voluntarily report undeclared income from betting and repatriated funds. Internet providers would also be required to remove illegal gambling content within 48 hours of notice—a clear step toward tightening oversight in Brazil’s digital gaming landscape.
Lawmakers say they will revisit betting tax rates once the broader framework for legal sports betting stabilizes under the Ministry of Finance and regulatory agencies.
The Senate is preparing to debate two new social and technological initiatives financed by gaming revenues. One of these involves creating a fund to support orphaned children, estimated to generate BR150 million annually through a 1% lottery contribution.
The proposal reflects a growing effort to channel betting revenue toward public welfare programs while maintaining transparency and accountability. Lawmakers have pointed to the potential of Brazil’s gaming sector to fund long-term community development if properly regulated and monitored.
Senator Esperidião Amin has introduced a bill focused on strengthening national cybersecurity through the National Program for Digital Security and Resilience. His proposal seeks to allocate 2% of fixed-odds betting revenue to digital security projects.
Amin explained the reasoning behind the proposal, stating:
“We are facing an escalation of cyber incidents that affect public service delivery and risk citizens’ data.”
He noted that Brazil remains one of the few major economies without a comprehensive cybersecurity framework. The plan includes establishing a National Cybersecurity Authority responsible for monitoring incidents and coordinating between government and private sectors.
The program aims to modernize systems, expand research and training, and create regional cyber incident centers. It would also encourage collaboration among health, finance, education, and energy industries to strengthen resilience nationwide.
Members of the Parliamentary Front for Cybersecurity and Cyber Defense have expressed support for the initiative, viewing it as an important connection between Brazil’s growing betting industry and one of its most urgent priorities—protecting citizens and infrastructure from digital threats.