The Brazilian Chamber of Deputies has vetoed a bill to retroactively tax betting operators.
The bill had been approved in the Joint Committee but floundered in the Chamber of Deputies before reaching President Lula, with 251 votes against the measure to 193 votes in support on Wednesday (8 October).
The bill called for the creation of a retroactive taxation regime for bookmakers, in addition to maintaining the gross revenue tax for operators at 12%, instead of the 18% suggested in the first version of the text.
The veto followed a day of political intrigue, which saw President Lula sack three ministers in an attempt to guarantee approval of the legislation, according to local reports. The three ministers were allowed to resume their roles after the vote.
Recriminations began to fly, with congressman and rapporteur Carlos Zarattini accusing the governor of São Paulo, Tarcísio de Freitas, of sabotage.
The government leader in the National Congress, Senator Randolfe Rodrigues, stated that the government has an “arsenal” of countermeasures in place that it will implement after the rejection.
His counterpart in the Senate, Lindbergh Farias, warned: “The government has tools. If these lobby groups think they’re going to get away with it, on the contrary. I think the situation for them may get worse.”
It is unlikely the industry has heard the last about tax rises as the political manoeuvres continue. In October 2026, Brazilians will go to the polls to elect deputies (federal and state), senators, governors as well as the president of the Republic.
The retroactive taxes were just a small part of the government’s entire financial plan, which has now been thrown into jeopardy and will have a huge impact on the elections.
The final version of the bill (provisional measure no.1,303) removed the increase in the GGR rate from 12% to 18% and created the retroactive collection regime, called ‘Litígio Zero Bets’, for operators that were live in Brazil between 2014 and 2024.
In addition to the new tax regime, the bill also reinforced measures against the black market, with internet providers told to take down unlicensed websites within 48 hours.
Don’t miss our annual London Summit on 22 October, where key topics include regulatory shifts in the UK market and the ethical use of AI, data and analytics for a safer and more trustworthy industry. Find out more about attending here.
The post Brazilian lawmakers veto bill to apply retroactive betting taxes first appeared on EGR Intel.
Tense day of political manoeuvres results in temporary reprieve for operators as government promises reprisals
The post Brazilian lawmakers veto bill to apply retroactive betting taxes first appeared on EGR Intel.