Brazil senate committee approves tax hike on gambling

Summary

The Senate’s Economic Affairs Committee (CAE) approved the proposed increase in taxes for betting and fintechs by a vote of 21 to 1. The bill (PL 5,473/2025), now at its final committee stage, will go to the Chamber of Deputies if no appeal is filed.

The rapporteur, Senator Eduardo Braga, presented a Supplementary Voting Report that softens the original proposal. Under the amended text the online gambling tax rises from the current 12% to 15% in 2026 and 2027, then to 18% from 2028 onwards — significantly lower than the initially proposed 24% GGR.

The text also plans to allocate 3% or 6% of the additional betting revenue (in whole or in part) to states, the Federal District and municipalities between 2026 and 2028 to offset changes to the income tax exemption threshold.

A new chapter targets illegal gambling and strengthens compliance: operators will need to prove suitability for authorisation, block suspicious transactions, submit quarterly public betting reports, follow specific rules for the PIX payment system, and be assessed via a Regulatory Compliance Index for Betting (ICRA). Sanctions can reach R$50,000 and internet companies would be required to remove illegal content within 48 hours of identification.

Key Points

Senate Economic Affairs Committee approved the tax increase by 21-1; bill may proceed to the Chamber of Deputies if uncontested.
Online gambling tax will move from 12% to 15% in 2026–27, then to 18% from 2028 — milder than the original 24% GGR proposal.
Between 2026 and 2028, 3% or 6% of additional betting revenue will be allocated to states, the Federal District and municipalities to offset income tax changes.
New compliance measures require operator suitability checks, transaction monitoring, quarterly public reports and PIX-specific rules to curb misuse.
A Regulatory Compliance Index for Betting (ICRA) will be introduced; breaches can attract fines up to R$50,000 and internet firms must remove illegal content within 48 hours.

Why should I read this?

Short version: if you work in gaming, payments or compliance — this changes the playing field. Taxes rise, compliance gets heavier and PIX rules could affect how fintechs and operators move money. If you want to avoid surprises, read the detail.

Author style

Punchy: this is a material policy shift for Brazil’s regulated gaming market. Operators and payments firms need to pay attention now, not later.

Source

Source: https://g3newswire.com/brazil-senate-committee-approves-tax-hike-on-gambling/