Brazilian lawmaker proposes higher gambling taxes to fund public healthcare amid fiscal strain

Brazil’s Workers’ Party (PT) has introduced a new proposal to increase taxes on online betting to 24%, reviving a debate over how gambling should be regulated and taxed in Latin America’s largest economy. The measure, presented by PT congressman Lindbergh Farias, is a key component of the party's campaign against what it calls the “BBBs” -bets, banks, and billionaires, a term used to describe sectors it views as undertaxed or disproportionately profitable.

Farias said the proposal seeks to make betting less attractive while generating additional revenue for essential public services, particularly healthcare. “It is necessary to find resources for investments in healthcare,” he stated, describing the initiative as part of a wider effort to confront Brazil’s ongoing fiscal challenges.

The proposal coincides with the regulatory priorities of President Luiz Inácio Lula da Silva’s administration, which has sought to tighten oversight and raise revenue from the country’s rapidly growing online gambling market. A previous government attempt to raise the betting tax rate to 18% was rejected by the Chamber of Deputies earlier in the year. The new PT bill, however, is expected to reignite the discussion with a stronger emphasis on the social costs of gambling.

According to Farias, higher taxation on betting is justified by the industry’s potential harm to individuals and families. “This bill raises Brazil’s taxation on bets to a level higher than the average for other sectors — which is justified by the fact that betting is an activity harmful to health and family finances," he stated.

"However, it is important to note that even with the proposed increase, Brazil’s tax rate will still remain below that of other countries, such as France and Germany,” the congressman said in a statement.

Farias also highlighted what he described as a growing public health concern linked to gambling addiction. “Brazil already has more than 2 million people addicted to gambling, and the number of patients showing signs of pathological gambling treated in the public health system increased by 300% between 2022 and 2024,” he noted.

The PT’s proposal would raise taxes on online betting operators to 24%. Party members argue that a stronger fiscal framework is necessary to ensure the industry contributes more to the public sector, particularly at a time when the government is seeking to balance fiscal responsibility with expanded social spending.

Despite growing political momentum around gambling taxation, the proposal faces an uphill battle in Congress, where some lawmakers have warned that excessive taxation could drive operators underground or discourage investment in Brazil’s regulated market.

Industry groups have also expressed concern that higher taxes could hurt compliance efforts by making legal operations less competitive against offshore betting sites.