Phased Rise in Brazil’s Gaming Tax Set to Start in 2026 Under Senate Compromise
Brazil will lift its tax on gross gaming revenue in stages from 2026 after a Senate committee approved a compromise plan.
LISTEN TO THIS ARTICLE:The Economic Affairs Committee (Comissão de Assuntos Econômicos, CAE) has backed an amendment to Bill 5,473/2025 that raises the tax applied to gross gaming revenue (GGR) from the current 12% to 15% in 2026, and to 18% by 2028. The change was proposed as a middle ground after an earlier, more aggressive proposal sought to increase the levy to 24% immediately.
Senator Renan Calheiros (MDB-AL) drafted the amendment, with rapporteur Senator Eduardo Braga (MDB-AM) presenting the report. The measure now heads to the Chamber of Deputies for consideration, unless opponents file an appeal for a plenary vote in the Senate. President Luiz Inácio Lula da Silva and Finance Minister Fernando Haddad have publicly supported raising gambling tax revenues to help fund social programmes; the government has earmarked R$300 billion for social spending in 2026.
The levy applies to operators’ gross receipts minus prizes paid to bettors – the common definition of GGR used in most regulated markets. Industry participants warn that the higher rate will squeeze margins for both established operators and newcomers to Brazil’s regulated online betting market, which only launched at the beginning of 2025.
“A step-up of this size, even phased, will be material for business plans that were built on a 12% tax base”, said Diego Lima, a gambling-market analyst at Luma Advisory. “Operators will need to reassess pricing, promotional budgets and local investment plans. Some may absorb the cost; others could pass it on to consumers or delay entry.”
Proponents argue the increase aligns taxation with Brazil’s social priorities. Under the proposal, revenue from the new GGR tax will be channelled primarily to social security, with a stated priority for health-related spending. Between 2026 and 2028, the federal government may also transfer part of those proceeds to states, municipalities and the Federal District to offset losses linked to income tax exemptions for public servants.
Alongside the GGR amendment, Federal Deputy Fernando Marangoni has introduced Bill No. 5,982/2025, which seeks to create a unified regulatory framework for state and municipal lotteries. The draft sets out national rules for governance, licensing, technology standards, player protection and transparency for subnational lotteries, requiring existing regional schemes to adapt to the new norms when enacted.
Related: Brazil's Legal Gambling Launch Not Stopping Illegal Segment
Next Steps and Industry Reaction
With CAE approval complete, attention now turns to the Chamber of Deputies. Parliamentary timing will determine whether the measure is fast-tracked before the 2026 budget cycle or delayed into next year’s legislative agenda. Legal teams for operators are already preparing for both scenarios, monitoring potential amendments and the scope of implementing regulations.
“Regulatory certainty is still settling in Brazil”, said Sofia Almeida, head of public affairs at a multinational operator active in Latin America. “Operators need clear rules on tax calculation, reporting and compliance timelines. A phased increase is preferable to a sudden jump, but predictable implementation and detailed regulation are key to sustainable market growth.”
More Business News
Fiscal Allocation and Regional Impact
Fiscal analysts note the timing of the tax rise – coinciding with planned social spending increases – makes it politically attractive for the federal government. Ana Ribeiro, a public finance researcher at Fundação Getulio Vargas (FGV), said: “Redirecting gaming revenues to social security and health can create visible public benefits, but transfers to states complicate the picture. The federal government will need transparent distribution rules to avoid fiscal disputes and ensure funds reach intended programmes.”
Market observers say the proposed rates would place Brazil within the range of many regulated markets, though exact competitiveness will depend on how other levies, licensing fees and withholding rules are implemented. For operators and investors, the priority is now clarity on implementation timelines and the final text to be debated in the lower house of Congress.
RELATED TOPICS: Business
Latest News
Regulation
Bulgarian Parliament Rejects Proposal to Centralize Gambling Under State Control
Dec 04, 2025
Regulation
UKGC Tightens Oversight of Adult Gaming Centres as Funding Boost Targets Illegal Gambling
Dec 04, 2025
Responsible Gambling
Rise in Online Sports Betting Fuels Growing Demand for Treatment in Ontario
Dec 03, 2025
Most Read
AGCO Launches Youth Compliance Monitor Program to Strengthen Underage-Protection Checks
Dec 02, 2025UAE Issues First Online iGaming Licence: Play971 Launches as Regulated Operator
Nov 28, 2025Must Read
Interviews
Exclusive Interview: Levon Nikoghosyan Shares AffPapa Winning Formula for Successful iGaming Events
Dec 03, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Phased Rise in Brazil’s Gaming Tax Set to Start in 2026 Under Senate Compromise