The licensed Brazil gambling sector looks set to soon face an increased tax rate after the Senate approved a gradual rise.
On Wednesday, the Senate plenary approved a bill to cut federal tax benefits for a number of sectors by 10%, while also increasing the tax rate on betting operators, by a vote of 62 to six. The Senate approval came within 24 hours of the Chamber of Deputies’ approval, in the early hours of Wednesday morning.
The bill – PLP 128/2025 – will see the tax rate jump from the current 12% on GGR to 13% in 2026, before rising to 14% in 2027 and 15% in 2028.
Half of the increase will go towards social security, with the other half directed to healthcare initiatives.
PLP 128/2025 will also establish joint liability on the payment of taxes for those who advertise illegal betting sites, or institutions such as financial and payment companies that work with unauthorised operators.
The bill will now go to Brazil’s President Luiz Inácio Lula da Silva for final approval. If the law is published, most of the bill’s measures will come into effect from the start of 2026.
However, under Brazil’s constitution, new or increased taxes are subject to a 90-day period from the date of publication before coming into effect, meaning operators will have a brief respite before paying the 13% rate.
A small win for the gambling sector in Brazil?
The eventual tax rate of 15% is lower than that approved by the Senate Economic Affairs Committee earlier this month, with PL 5,473/2025 outlining an 18% rate for operators by 2028.
PLP 128/2025 is a political manoeuvre by the government after a number of politicians moved to force further analysis by the Senate plenary on PL 5,473/2025.
The delay meant it likely wouldn’t have advanced before government recess starts later this month.
The vote on the bill to introduce a 15% tax on player deposits has also been postponed until 2026.
Funds from the measure, labelled the CIDE-Bets tax, would go to the National Public Security Fund, with the government expecting it to provide an additional BRL30 billion ($5.5 billion) in revenue.
The bill included provisions to bring back the RERCT Litígio Zero Bets measure, levying a 15% retroactive tax on operators’ activities prior to regulation between 2018 and 2024.
It will now be up to Brazil’s president to decide whether to implement a gradual tax rise for betting operators.