The regulated Brazil betting market contributed BRL1.09 billion ($202.7 million) in tax revenue during October, falling short of September’s total.
The Federal Revenue Service in Brazil published its monthly tax update on Monday. The BRL1.09 billion figure was 9.4% lower than the BRL1.21 billion generated in September.
However, it did take the total market tax contribution to BRL7.95 billion for the year. This is the latest indicator the market has reaped sizeable financial benefits since regulation launched in Brazil on 1 January.
Brazil government set to vote on tax increase on Wednesday
The tax situation for the regulated Brazil betting sector could change imminently, with a vote scheduled on Wednesday for the current rate to be doubled.
Currently, the tax rate on GGR stands at 12%. However, operators have to pay a number of other taxes, meaning their overall rate is in excess of 40%.
The Senate’s Economic Affairs Committee is expected to vote on PL 5,473/2025 on Wednesday, with the bill doubling the tax rate to 24%.
If it is approved the bill will go straight to the Chamber of Deputies, unless an appeal is made for the Senate plenary to vote on it.
The bill is facing opposition, however, with a previous vote postponed reportedly due to the Chamber of Deputies president Hugo Motta stating the proposal would fail to have the required support to pass.
Brazil government intent on hiking gambling taxes
With an election looming next year, President Lula’s administration appears determined to increase gambling taxation as it seeks to hit its fiscal targets.
The government recently faced a major setback when its provisional measure proposing a 50% hike in gambling taxes failed.
According to Brazilian iGaming analyst Elvis Lourenço, this defeat has triggered renewed and increasingly urgent efforts by the administration to push tax rates even higher.
“That’s the main reason that they struck back so fast, because it was embarrassing for them,” Lourenço, managing partner of EX7 Partners, previously told iGB.
“This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”
Lourenço warns that doubling the current tax rate would be an “insane” decision, one that could jeopardise the regulated market.
Brazil’s regulated betting market has contributed close to BRL8 billion since it launched on 1 January.