The dust has settled on the tax policy for Brazil's licensed gambling industry, with the Senate passing the bill for a gradual increase in gambling taxes by a large majority, pending only the final approval of the president to take effect. This adjustment will be implemented in stages, balancing fiscal needs and giving operators space to adapt. Industry dynamics can be continuously monitored through the PASA official website.
Gradual Tax Rate Increase to Finally Settle at 15%
The PLP 128/2025 bill passed specifies a clear plan for the GGR tax rate for gambling operators. The current tax rate of 12% will be raised to 13% in 2026, further increased to 14% in 2027, and finally stabilize at 15% in 2028.
This is significantly lower than the 18% tax rate proposed by the Senate Economic Affairs Committee for 2028, which is a small positive for operators. The bill was passed in the Senate with a high support rate of 62 votes in favor and 6 against, and the House of Representatives had already approved it in the early hours of the previous day, moving forward quite quickly.
Specific Use of Tax Revenue, Illegal Gambling Parties Responsible
The bill specifies that half of the additional tax revenue generated by the tax increase will be used for social security, and the other half will be invested in the health care sector. Additionally, the bill establishes joint liability clauses for entities advertising illegal gambling sites or collaborating with unauthorized operators, financial, or payment companies, all of whom will share the tax liability.
It is worth mentioning that the original plan to levy a 15% CIDE-Bets tax on player deposits, as well as a 15% retrospective tax on operations before regulation from 2018-2024, has been postponed to 2026 for further voting. If implemented, the CIDE-Bets tax is expected to bring an additional income of 30 billion reais (approximately 5.5 billion USD) to the national public safety fund.
Presidential Approval as the Final Step, Effective with a Buffer Period
The bill has now been submitted to Brazilian President Luiz Inácio Lula da Silva, awaiting final signature and approval. Once signed and announced by the president, most provisions of the bill will take effect from the beginning of 2026.
However, according to the Brazilian Constitution, new taxes or tax increases need to be officially effective 90 days after announcement, meaning operators do not need to immediately pay taxes at the 13% rate, allowing a brief buffer period to adjust their operational strategies.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
