The Brazilian Government Has Officially Announced the Introduction of an 18% Tax for Betting Operators Starting October 1, 2025
The Brazilian government has officially announced the introduction of an 18% tax for betting operators starting October 1, 2025.
Terms of the New Tax
The tax rate will increase from 12% to 18% and will apply to the Gross Gaming Revenue (GGR) — the amount wagered minus the winnings paid out.
The new tax is being introduced under a Provisional Measure (MP), adopted as an alternative to the decree increasing the tax on financial operations (IOF).
Government’s Financial Expectations
| Year | Expected Tax Revenue |
|---|---|
| 2025 | R$ 284.94 million |
| 2026 | R$ 1.7 billion |
| 2027 | R$ 1.7 billion |
In total, the economic team expects to collect around R$ 31.4 billion by 2026, of which R$ 10.5 billion will be raised in 2025 alone.
Industry Reaction to the Tax Increase
The increase in tax burden has raised concerns among representatives of the legal fixed-odds betting market.
The National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) signed a cooperation agreement on June 12, shortly after the government’s announcement.
Who Represents the Market
- President of ANJL: Plínio Lemos Jorge
- President of IBJR: Fernando Vieira
Both organizations represent 95% of the regulated market in Brazil. Their goal is to protect lawful operators.
Potential Consequences of the Tax Increase
According to ANJL, raising the rate to 18% will lead to a total tax burden of over 50% and may undermine the sustainability of legal companies.
Main Threats:
- Operators exiting the market
- Reduced investment
- Job losses
- Growth of the shadow market and illegal activities
Officially registered companies have already invested around R$ 30 million in licenses and plan to contribute over R$ 4 billion in taxes to the state in 2025.
ANJL’s Position
In an official statement, ANJL emphasizes:
“The proposal effectively punishes those who operate legally and encourages informality, jeopardizing not only tax collection but also the government programs in sports and healthcare funded by the sector.”
The organization expressed its willingness to engage in an open and responsible dialogue with the government, stressing the need for predictability and balance in any regulatory changes.