Lindbergh Farias, leader of the Workers’ Party in Brazil’s Chamber of Deputies, has presented a new bill proposing to double the market’s gambling tax rate to 24% of gross gaming revenue.
Farias proposed PL 5,076/2025 on 9 October, notably just a day after the Brazil Chamber of Deputies withdrew a provisional measure that had intended to raise the gambling tax from 12% to 18%.
Under Farias’ bill, half of the revenue from the 24% tax rate would go towards social security and actions within public health, while the remainder would be split between sectors such as sports and culture.
In his justifications for the bill, Farias noted the huge volume of betting in Brazil, which the bill reported now sits behind just the US and the UK in terms of highest betting consumption, according to a 2023 Comscore study.
“This growing increase in bets and the number of bets is accompanied by several social and economic problems,” Farias’ bill read. “What often begins as a joke can eventually lead to gambling addiction.
“Gambling addiction, in addition to having a strong impact on the mental health of gamblers and their families, can have a significant impact on personal and family finances, leading to significant indebtedness.”
Workers’ Party trying again to hike gambling tax in Brazil
Farias is a member of the Workers’ Party, currently in power and led by Brazil President Luiz Inácio Lula da Silva.
However, the failure of the Workers’ Party to pass any new rules on gambling tax last week has cast major doubt over its ability to fulfil its economic policies.
The previous tax increase bill, PM 1,303, initially intended to raise gambling taxes by 50%.
However, this was scrapped in the lead-up to last week’s vote on the provisional measure, with a retrospective tax programme on licensed operators’ pre-regulation activities also vetoed.
This new bill, PL 5,076/2025, marks a new attempt to try and increase gambling taxes and aid the government’s economic agenda.
“This proposed law increases Brazilian taxation on betting to a higher level than the average for other activities – which is justified by the fact that betting is an activity that is harmful to health and the family economy,” PL 5,076/2025 reads.
“However, it is important to emphasise that, even with the proposed increase, the Brazilian tax rate will still be below the rate of other countries, such as France and Germany.
“Therefore, to try to reduce this epidemic, in addition to all the regulations being developed by the federal government, we must increase taxes on betting so that bets become a little less attractive and so that the country obtains the resources necessary to invest in its healthcare system.”
After its crucial provisional measure failed last week, Brazil’s government is taking new steps to increase gambling taxes.