Potential Legalization of Sports Betting and Online Casinos in Brazilian Elections
Proposed Tax Increase for Brazil's Legalized Gambling Industry Remains Uncertain
After a long journey that began in 2018, the final vote on the tax rate for legalized sports betting and online casinos in Brazil is still pending, with debates and hearings ongoing in Congress as of early August 2025.
The current provisional measure (MP 1.303/2025) proposes increasing the tax on Gross Gaming Revenue (GGR) from 12% to 18%, a 50% hike, which if approved, would significantly raise the tax burden on operators. This provisional measure was enacted in June 2025 and extended until at least October 8, 2025, to allow more time for legislative debate and vote.
A joint congressional committee, chaired by Senator Renan Calheiros, with deputy Carlos Zarattini as rapporteur, held multiple public hearings in August 2025 to discuss the proposal before a final vote. Industry groups have expressed concerns that this increased taxation, when combined with other corporate taxes, could push total tax burdens on operators above 50%, potentially driving some companies to leave the Brazilian market and encouraging illegal gambling platforms.
Despite the controversy, Brazil reported strong tax revenue from online betting in the first half of 2025, totaling approximately BRL 3.87 billion (around USD 699 million), reflecting rapid market growth after regulatory implementation. The government and Finance Minister emphasize the need for higher taxes on betting to address social inequality and fund public finances, although calls for even stricter controls continue.
As of early August 2025, the provisional measure and proposed tax increase had not yet been finalized by the Brazilian Congress, with the deadline for a vote extended to October 2025. The final outcome of the vote on legalized sports betting and online casino tax rates depends on these ongoing legislative discussions.
It's important to note that the initial tax rate for legalized gambling was 18%, but it was reduced to 12% following heavy criticism. If the 18% tax rate is reinstated, it would mean a significant increase for operators. Additionally, 36% of the tax revenue from legalized gambling is allocated for the sports sector, while 14% is allocated for public security.
The decision on the legalization of sports betting and online casinos in Brazil seems imminent, but the tax rate remains a contentious issue. Stay tuned for updates on this developing story.
[1] "Brazil's Provisional Measure Proposes 18% Tax on GGR for Legalized Sports Betting and Online Casinos." Gambling Insider, June 2025. [2] "Brazil's Proposed Tax Increase for Legalized Gambling Industry Sparks Controversy." The Brazilian Times, August 2025. [3] "Industry Groups Warn of Exit from Brazilian Market due to Proposed Tax Increase." Gambling Business, August 2025. [4] "Brazil Reports Strong Tax Revenue from Online Betting in First Half of 2025." The Rio Times, July 2025. [5] "Government Emphasizes Need for Higher Taxes on Betting to Address Social Inequality." The Brazilian Herald, August 2025.
Online casinos in Germany, with their variety of sports-related betting, could face a significant tax increase if the Brazilian Congress finalizes the proposed 18% tax on Gross Gaming Revenue for legalized gambling, as discussions continue regarding the legislation. In this situation, operators might need to reconsider their market strategies or even exit the Brazilian market, potentially leading to an increase in use of illegal gambling platforms, as witnessed in other countries facing similar tax challenges.
