A renewed effort to increase tax rates for Brazil’s online gambling sector has taken a significant step forward, gaining approval from the Senate’s Economic Affairs Committee (CAE).
The proposal, spearheaded by Economic Affairs Committee chair Senator Renan Calheiros and filed as Bill 5,473/2025, outlines a gradual tax hike intended to bolster state revenues.
Under the current framework, operators are subject to a 12 percent tax rate. The new bill proposes increasing this rate to 15 percent starting in 2026, followed by a further rise to 18 percent in 2028.
This staged approach contrasts with an earlier legislative attempt this year, which sought an immediate jump to 18 percent. That previous measure failed to pass after being complicated by last-minute amendments involving retroactive taxation.
The bill is now set to move to the Chamber of Deputies for further consideration, provided no request is made for a full Senate floor vote. While the government views this as a necessary fiscal adjustment, industry representatives have voiced strong opposition.
The Brazilian Institute for Responsible Gaming (IBJR) warned that higher taxes could undermine the recently regulated market, potentially driving millions of players toward unlicensed offshore operators.
The IBJR argues that excessive taxation leaves consumers vulnerable to fraud and scams prevalent in the unregulated sector. Instead of raising taxes, the association urges authorities to prioritize cracking down on the illegal market.
A study commissioned by the IBJR and conducted by LCA Consultoria Econômica indicates that the illegal sector remains a dominant force, accounting for 51 percent of the total market.
