Brazil Proposes Tax Increase on Fixed-Odds Betting to Strengthen Healthcare Funding

Brazil’s government has proposed raising the tax on fixed-odds betting from 12% to 18% of Gross Gaming Revenue, with the additional funds expected to support healthcare and other public services.

The measure, outlined in Provisional Measure MP 1,303/2025, is scheduled to take effect on October 1, 2025. According to government projections, the reform could generate R$ 284.94 million in extra revenue this year and about R$ 1.7 billion annually from 2026 onwards.

Finance Minister Fernando Haddad defended the proposal in Congress, emphasizing that betting operators should contribute proportionally to the country’s social programs. He argued that the higher rate will not only secure more funds for public services such as healthcare but also act as a tool to discourage excessive gambling.

The planned increase has triggered strong reactions from the industry. Licensed operators and trade associations warned that raising the rate by 50% could harm profitability, discourage investment and encourage players to turn to illegal platforms. Alexandre Fonseca, CEO of Superbet, criticized the proposal, stressing that sudden fiscal changes undermine market stability and restrict consumer choice.

The betting tax hike is part of a broader fiscal package, which also includes adjustments to investment taxation and the removal of preferential rates for certain financial companies. Overall, the government expects the package to generate about R$ 40 billion (USD 7.2 billion) in annual revenues.

Congress will now debate the measure, which could significantly reshape the economics of Brazil’s regulated betting industry while providing a fresh source of funding for healthcare and other priority areas.