Brazil operators will face a 15% tax rate by 2028, after the nation’s president Luiz Inácio Lula da Silva approved the gradual tax rise.
Lula gave final approval on Complementary Law No 224 last week, after the Senate and Chamber of Deputies both approved the original text, PLP 128/2025, in mid-December.
Complementary Law No 224, which will cut federal tax benefits for several sectors by 10%, will raise the tax rate on gambling licensees from the current 12% on GGR to 13% in 2026. It will then increase to 14% in 2027, and then finally settle at 15% from 2028 onwards.
From 2026, 1% of the revenue collected by these companies must be directed to social security, increasing to 2% in 2027 and then to 3% in 2028.
Complementary Law No 224 also introduces joint tax liability for entities that advertise illegal betting sites, as well as institutions such as financial and payment companies that do business with unlicensed operators.
Lula’s approval of Complementary Law No 224 saw many of its effects come into effect from the New Year. However, under Brazil’s constitution, any new or increased taxes are subject to a 90-day waiting period from the date of publication before taking effect, giving operators a short reprieve before the 13% rate applies.
Player deposits tax another threat in Brazil
The final tax rate of 15% is lower than that approved in early December by the Senate’s Economic Affairs Committee, where PL 5,473/2025 set out an 18% rate for operators by 2028.
The subsequent PLP 128/2025 represents a political manoeuvre by the government after several lawmakers sought to push PL 5,473/2025 back to the Senate plenary for further scrutiny.
That move caused delays, making it unlikely the bill would progress before the government recess began later in December.
Although the 15% rate could be a small victory for gambling operators, many in the licensed sector are fearing a potential tax on player deposits.
Last month, the Senate plenary approved a 15% tax on player deposits to licensed platforms. However, because the bill was amended, it will now be sent back to the Chamber of Deputies, where it will face further analysis before progression to the president for final approval.
Revenue from the newly created CIDE-Bets tax will be directed to the National Public Security Fund, with the levy expected to generate around BRL30 billion ($5.5 billion) annually.
Meanwhile, the Antifaction Bill has reintroduced the RERCT Litígio Zero Bets mechanism, which required operators to pay a 15% retrospective tax on gambling activities carried out between 2018 and 2024, ahead of the regulation of the market that came into effect on 1 January 2025.
Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, warned iGB the CIDE-Bets tax could risk channelisation to licensed platforms dropping below 20%.
Operators will face a staged tax increase, reaching 13% in 2026, 14% in 2027 and finally 15% in 2028.