The Federal Government confirmed, this Wednesday (11), that it will adopt stricter rules and increase taxation for sportsbooks (better known as bets). These changes are part of a new provisional measure (MP) aimed at increasing taxes to offset the impact of the new decree on the IOF (Tax on Financial Operations).
Among the actions that the team of the Minister of Treasury, Fernando Haddad, prepared is the definition that the broadcasting of unauthorized betting advertising constitutes an infraction.
The text establishes that the infraction will apply to people or companies that “carry out, directly or indirectly, any form of advertising or propaganda in physical or virtual media, of an agent who carries out, without due authorization, activities related to fixed-odds betting”.
The amendment modifies sections of Law No. 14,790 of 2023, which regulates virtual betting in Brazil, with the aim of including this new determination. Read the full text.
Another point in the text requires social networks and internet providers to create direct and agile communication channels with the government to respond to urgent orders.
“Companies providing internet connections and internet applications must maintain an exclusive, permanent and functional communication channel with the regulatory body, intended for receiving and priority processing of the determinations provided for in this article, in order to ensure rapid treatment and response times compatible with the urgency of the measures adopted”, states the text.
Increase in taxes on bets
In addition, the provisional measure also provides for an increase in the tax rate on betting operations, which will increase from 12% to 18%, generating a 50% increase. The Treasury Department justifies that the increase is of a regulatory nature and aims to contain the uncontrolled expansion of the sector.
The government will allocate part of the revenue to initiatives in the health area and to actions to combat illegal operators who operate without authorization in the betting market.
Industry entities, on the other hand, harshly criticized the decision. Therefore, for betting houses, the increase in the tax burden is considered disproportionate. Furthermore, this measure occurs only six months after the implementation of the sector’s regulation, making any predictability in the sector impossible.
Finally, according to a manifesto released by six associations, the segment has 79 authorized operators, who have already invested more than R$2.4 billion in grants to start operations in Brazil.
However, it is worth noting that article 61, which establishes a 50% increase in fees on transactions, only comes into force on the first day of the fourth month following its publication.
Also called noventena, this action requires that entities collect the tax only after 90 days have passed since the publication of the law that created or expanded it.
IBJR rejects increase in taxation for the betting sector
Shortly after the announcement of the provisional measure, the Brazilian Institute of Responsible Gaming (IBJR) vehemently opposed the increase in taxes on the sports and online betting segment. The entity also assures that it will “seek all means to defend the regulated market, including resorting to the judiciary”. See the statement:
“The Brazilian Institute of Responsible Gaming (IBJR) expresses its vehement indignation regarding the increase in taxation for the online gambling sector brought about by Provisional Measure 1,303 published this Wednesday, June 11th. The measure is unacceptable and makes the operation of many companies that have trusted and invested in the regulated market unviable, creates legal uncertainty and threatens public revenue.
At the beginning of 2025, that is, just 5 months ago, the legalized operators paid R$30 million each for the five-year concession, totaling more than R$2.3 billion already collected.
The sector structured its planning based on the current rate of 12%, and any change in the middle of the contract compromises the economic-financial balance and confidence in the regulatory environment.
In view of this violation, the IBJR will seek all means to defend the regulated market, including resorting to the judiciary.
The proposal does not solve the Government’s structural revenue collection problem and will have the opposite effect: by increasing the betting tax, the illegal market tends to grow from the current 50% to at least 60%, generating an estimated loss of more than R$2 billion per year in revenue.
The way to increase revenue is not to penalize those who operate within the law, but rather to rigorously combat illegality and protect bettors by following the sector’s regulations”,
