News

Brazil: More tax developments, as Defence Ministry pushes for a piece of the pie

Senator Eduardo Braga plans to raise the betting tax gradually, reaching 18% by 2028.

· 4 min read
Share this article
Follow us on Google
AI Summary
Sign in to listen
A senator and a minister
Key Points
Senator Eduardo Braga's report proposes gradual increases to GGR taxation for betting operators until 2028
The Defence Ministry seeks a share of betting tax revenue to fund military sports

Two parallel debates are unfolding around Brazil's market. Together, they reveal how multiple sectors are positioning themselves around the same revenue source, as the Government recalibrates its taxation model for licensed operators.

In the Senate's Economic Affairs Committee, the report filed by Senator Eduardo Braga sets out a phased increase affecting the betting and fintech industries.

For fintech companies, the CSLL rate would rise from today's 9% to 12% in 2026 and 15% in 2028.

For operators, the GGR rate would increase from 12% to 15% next year, reaching 18% by 2028.

The proposal frames the adjustment as a gradual, predictable mechanism aimed at helping the Federal Government to meet its fiscal targets, including eliminating the primary deficit by 2026, without replicating the political backlash generated by Provisional Measure 1303/2025, which attempted a higher tax but was ultimately withdrawn.

While Congress negotiates how much more legal operators should pay, another front has opened over how that revenue should be divided.

The Defence Ministry wants 1% of the resources currently allocated to the Ministry of Sports, part of the 36% of tax revenue set for sporting initiatives.

The proposal would redirect roughly BR50m ($9.34m) per year to military sports programmes, strengthening the budget of the Military Sport Commission in Brazil.

Sports Minister André Fufuca has reportedly not opposed the reallocation, but congressional backing remains uncertain.

As the market becomes a significant source of federal revenue, different sectors are trying to define their place within the national evolving ecosystem.

Good to know

Manaus recently approved a municipal Gambling Harms Awareness Week, reinforcing the debate on taxation, responsibility and public policy

Reaction Board

News Analysis

View All
The new kings of US election donations

The new kings of US election donations: AI, crypto and sports betting

During this year's US midterm election cycle, corporate donations reached a record of $648m, with crypto, AI and online betting companies accounting for $344m.

6 min read • • By Patrick Fasolis
Alina Mihaela Popa Interview

Alina Mihaela Popa: Three techniques that make a flagship product

Iconic21's Chief Commercial Officer discusses how to grow an iGaming franchise.

4 min read • • By Will Underwood
SiGMA World Themes: AI, Crypto and more

SiGMA World preview: AI, crypto and the event's biggest themes

Experts from all over the world and across the whole industry will gather in November to discuss some of the biggest topics in gambling.

5 min read • • By Patrick Fasolis

In The News

View All