The Ministry of Treasury is optimistic about Sunday’s meeting with Davi Alcolumbre, Hugo Motta and leaders of the government base at the meeting. In addition, the objective is to define alternatives for the impasse of the Tax on Financial Transactions (IOF). Consequently, resources are being sought for the functioning of the public machine in 2025, respecting the rules of the fiscal framework.
The government of Luiz Inácio Lula da Silva (PT) is negotiating with the National Congress. Some measures are under discussion to compensate for a possible reduction in the increase in the IOF. However, Congress has already weakened or rejected some of these proposals.
Higher taxation of betting emerges as an alternative
Folha de S.Paulo reported: “among the topics discussed is also the possibility of greater taxation of betting sites, which has the support of Motta and Alcolumbre.
One of the alternatives discussed is to increase the rate currently provided for in the legislation from 12% on the collection of betting houses to 18% – a value originally proposed by the Executive, but reduced by parliamentarians”.
Lauro Jardim, on Globo Online, also confirms this information. He stated: “The government’s proposal also includes more taxation for bets. The idea is to increase it from 12% of gross revenue to 18%.
(By the way, 18% was the tax percentage of the original Treasury project when bets were regularized in 2024; but the game’s bench lowered it to the current 12%)”.
It is clear that the information from Folha and Globo is similar. Both appear to come from a source linked to the Ministry of Finance. Thus, the ministry included the adjustment of bets among the solutions for the IOF.
Possible impacts of the new tax rate on the sector
However, this adjustment could seriously harm the finances of regulated platforms. The measure proposes to tax companies at 18% on Gross Gaming Revenue (GGR). Therefore, 82% of revenue would remain for operations and other taxes.
Currently, betting companies already pay a number of federal taxes. These include:
- Contribution to Social Security Financing (COFINS): 7.6% of revenue
- Corporate Income Tax (IRPJ): 15% of revenue
- Social Contribution on Net Profit (CSLL): 9% on profit
- Social Integration Program (PIS): 1.65% on profits
These federal taxes total 33.25%, in addition to the Tax on Services (ISS), a municipal tax. Its rate varies from 2% to 5%, depending on the municipality of the company.
In this context, the total taxation of bets varies from 35.25% to 38.25%. With the current 12% on the GGR, the burden reaches 45.25% to 50.25%. The proposal increases the GGR rate to 18%, representing an increase of 6%. Therefore, the total taxation can reach 51.25% to 56.25%.
