Brazil's Senate has pushed back the vote on PL 5.473/2025, a bill that would double taxation on operators' gross revenue from 12% to 24%.
According to Senator Renan Calheiros, who authored the proposal, the postponement follows a formal request from the Ministry of Finance, which sought additional time to discuss the measure's fiscal impact and build consensus within Congress.
The bill, reported by Senator Eduardo Braga, forms part of the Government's effort to offset revenue losses from a recently approved personal income tax exemption for workers earning up to BR5,000 ($934) per month.
The Ministry of Finance expects the increase in betting taxes, along with higher rates for financial institutions and fintech companies, with expectations to generate roughly BR18bn in additional revenue over the next three years.
Despite its fiscal importance, the measure faces resistance among Senators concerned about overburdening the regulated market.
The betting industry has warned that steep tax increases could erode margins for licensed operators, discourage new entrants and inadvertently strengthen unregulated competitors, particularly at a time when the regulated market is still taking shape under the new framework established earlier this year.
Senator Braga confirmed that he continues to negotiate the bill's final presentation with the Ministry of Finance and sector representatives.
Lawmakers expect the proposal to return to the Economic Affairs Committee for a vote in the second half of November.
The Government views the measure as a key step in not only consolidating its fiscal policy, but also ensuring long-term sustainability of Brazil's betting sector.
A federal audit found that Brazilian welfare recipients spent BR3.7bn on betting platforms in January alone
