Brazil Joint Committee Approves Retroactive Tax on Betting Operators, 50% Tax Hike Dropped

A joint committee of Brazil’s Congress has approved a controversial bill to retroactively tax licensed betting operators, while eliminating the previously proposed 50% gambling tax increase.

The revised measure removes the increase in tax rate from 12% to 18% of GGR (a 50% jump), but introduces a Special Regime for the Regularization of Exchange and Tax Assets (“RERCT Litígio Zero Bets”). Under this scheme, operators may voluntarily declare assets and profits from gambling operations conducted between 2014 and 2024 and will be subject to a 15% retrospective income tax + 15% fine on those amounts.

The committee approved the amended bill by a slim margin of 13 to 12 votes.
Next, the proposal must pass both the Chamber of Deputies and the Senate to become fully law.

Supporters argue the retroactive tax could raise around BRL 5 billion (≈ US$560 million)—equivalent to several years’ worth of revenue under the scrapped rate hike.

Critics warn this retrospective measure may create legal uncertainty, deter investment, and raise constitutional challenges.