Brazil’s Congress has stepped back from a planned tax hike on betting operators, removing the provision that would have raised the gross gaming revenue (GGR) tax rate from 12% to 18%, in a major fiscal reform package.
The change came when Deputy Carlos Zarattini, the rapporteur for Provisional Measure 1.303/2025, deleted the betting tax increase clause from his report.
His decision followed growing opposition from within Congress and industry stakeholders, who warned the hike would undermine the viability of regulated platforms.
Originally, the government had proposed the increase as a substitute revenue source after Congress rejected a separate attempt to hike Brazil’s financial transactions tax.
But intense lobbying from industry bodies and operators and legislative pushback – particularly from Chamber Speaker Hugo Motta, who withdrew support under pressure – forced a retreat.
Rather than charging a higher ongoing rate, Zarattini’s revised proposal pivots toward a retroactive tax regime targeting platforms that operated before regulation took effect (from 2014-2024), under a programme dubbed “Litígio Zero Bets”.
Meanwhile, measures to crack down on unlicensed betting – including requiring internet providers to block illegal sites – remain in the reform.
The revised proposal now heads to full congressional debate without the betting tax increase. Its approval is required by today (Wednesday, 8 October) to stay in force.
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Punitive tax rise fails to get support – but new proposal would see pre-licensed operators taxed retroactively
The post Brazil scraps 18% GGR tax hike plan first appeared on EGR Intel.