Brazil records $207.1 million in October betting taxes as government pushes for major rate hike

Brazil’s regulated betting market delivered BRL1.09 billion ($207.1 million) in tax revenue in October, bringing the total collected since the market opened on 1 January to BRL7.95 billion ($1.51 billion), according to new figures from the Federal Revenue Service. The October contribution was lower than September’s BRL1.21 billion ($229.9 million), marking a month-on-month drop of 9.4%.

The latest update reinforces the scale of tax income generated by Brazil’s newly regulated betting sector, even as lawmakers consider proposals that would significantly increase the tax burden on licensed operators.

The Economic Affairs Committee (CAE) again postponed the discussion and vote on the Bill that increases the taxation of betting from 12% to 24% last Wednesday. Still, the issue is set to resurface and could take the form of a gradual increase.

The rapporteur for the bill, Senator Eduardo Braga (MDB-AM), proposed a phased increase for the sector. According to the proposal, in 2026 and 2027, betting operators would be taxed at 15%, and in 2028, they would start paying 18%. At the request of Senator Rogério Marinho, a new review of the project was granted, which should be voted on this week.

Although operators already face additional levies that push their effective tax rate above 40%, the administration of President Luiz Inácio Lula da Silva is continuing its push for higher taxation ahead of next year’s election. The government argues that increased contributions from betting companies are necessary for meeting fiscal targets.

The pressure to raise taxes follows the government’s failed attempt to impose a 50% increase through a provisional measure, a setback that has prompted renewed efforts to secure higher rates. Brazilian iGaming analyst Elvis Lourenço, managing partner of EX7 Partners, said the defeat intensified the administration’s determination to revisit the issue. “That’s the main reason that they struck back so fast, because it was embarrassing for them,” he previously told iGB.

With elections approaching, Lourenço said the push has also become politically advantageous. “This becomes an election agenda, because this is good for the audience and the public to get votes, because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government," the expert added.