Brazilian gambling operators will face a 15% tax rate by 2028 following presidential approval of new fiscal legislation.
President Luiz Inácio Lula da Silva signed Complementary Law No 224 last week, finalizing the measure.
The law was approved by both the Senate and the Chamber of Deputies in mid-December.
It introduces a phased increase in taxes applied to licensed gambling operators over the coming years.
The move forms part of a broader effort to reduce federal tax benefits across several industries.
For the betting sector, it brings greater clarity on long-term fiscal obligations.
Timeline for Gambling Tax Changes
Under the new framework, gambling operators will see their tax rate rise from 12% to 13% in 2026.
The rate will increase again to 14% in 2027.
From 2028 onwards, the tax will settle at 15% of gross gaming revenue.
In parallel, the law introduces mandatory social security contributions tied to operator revenues.
These contributions will begin at 1% in 2026.
They will rise to 2% in 2027 and reach 3% by 2028.
Although many provisions took effect with the new year, constitutional rules provide a short delay.
New or increased taxes in Brazil are subject to a 90-day waiting period before enforcement.
Wider Enforcement and Compliance Measures
Complementary Law No 224 also expands tax liability beyond licensed operators.
Entities that advertise illegal betting platforms may now share joint tax responsibility.
The same applies to financial institutions and payment providers that support unlicensed operators.
The measure aims to strengthen enforcement and limit the reach of illegal gambling activity.
Authorities hope the approach will improve compliance across the wider betting ecosystem.
Player Deposit Tax Raises Fresh Concerns
While the 15% rate is lower than some earlier proposals, operators remain cautious.
An earlier Senate committee proposal had targeted an 18% tax rate by 2028.
Political delays ultimately prevented that measure from advancing before the end-of-year recess.
However, a separate proposal to tax player deposits has heightened industry anxiety.
Last month, the Senate approved a 15% tax on deposits made by players on licensed platforms.
Because amendments were made, the bill must return to the Chamber of Deputies for further review.
If approved, it would then require presidential sign-off.
Additional Levies and Industry Warnings
Revenue from the newly created CIDE-Bets tax will be allocated to the National Public Security Fund.
The levy is expected to generate approximately BRL30 billion annually.
Separately, the Antifaction Bill has revived the RERCT Litígio Zero Bets mechanism.
This requires a retrospective 15% tax on gambling activity between 2018 and 2024.
The mechanism applies to operations conducted before full market regulation began in January 2025.
Legal experts have warned about potential unintended consequences.
Udo Seckelmann of Bichara e Motta Advogados cautioned that the CIDE-Bets tax could reduce channelisation.
He warned licensed market participation could fall below 20% if the tax burden becomes excessive.