Brazil Seeks to Double Gambling Tax to 24% After Earlier Reform Collapsed

Brazil’s government has revived its plan to raise taxes on the gambling sector — this time proposing a 24% rate on gross gaming revenue (GGR), double the current 12%, under Bill PL 5,076/2025.

The new proposal, presented by members of the ruling Workers’ Party (PT), comes just weeks after the failure of Provisional Measure MP 1,303/2025, which sought to increase the rate to 18%. The measure was withdrawn following strong opposition in Congress and criticism from operators and financial experts.

If approved, the 24% tax would apply to both sports betting and online gaming, with 50% of the proceeds earmarked for public health and social security and the remainder directed to sports, culture, and social programs.

Supporters of the bill argue that a stronger fiscal framework is needed to curb the social risks associated with gambling, including addiction and household debt. The bill’s text states that “what often begins as a leisure activity may evolve into pathology,” underscoring the need for government intervention.

However, industry observers warn that such a steep tax increase could discourage investment and drive operators and players toward offshore markets, undermining the regulated ecosystem established just months earlier.

The proposal is now awaiting debate in the National Congress. Its passage will depend on the government’s ability to balance fiscal goals with market sustainability — a key issue as Brazil continues to consolidate its legal gambling framework.