For the Minister of Finance, Fernando Haddad, the betting market in Brazil should be rethought. Haddad made the statement this Thursday (12). According to him, the gross profit of these companies is R$40 billion per year, this value is the difference between what they receive from bets and what they pay in prizes, the GGR (Gross Gaming Revenue).
Haddad went further. “They don’t generate jobs. I personally don’t like gambling. I think it’s something that should even be reconsidered by the National Congress,” he said.
“Of these R$40 billion, they should generate something less than R$10 billion in taxes. In other words, a lower tax rate than a normal company,” he declared.
The position comes after the announcement of a tax increase for the sector. Last Wednesday (11), the Federal Government published a Provisional Measure (MP). In it, among other actions, it increases the rate charged on revenue from gambling by sportsbooks from 12% to 18%.
Taxation on sportsbooks increased from 12% to 18%
Haddad reiterated that the proposal sent in 2023 by the Federal Government to tax betting houses was already 18%. The text was approved with a rate of 12%. However, the provisional measure published on Wednesday (June 11) determines a charge of 18%.
In a manifesto, six associations representing betting houses state that the increase in tax burden on bets is “unjustifiable”. According to the note, the sector is already “extremely burdened”.
Furthermore, “the expected tax and social contribution for 2025 exceeds R$4 billion, with allocation to strategic areas such as sports, health, public safety, tourism, education and social security”.
In light of this, the National Association of Games and Lotteries (ANJL), which represents around 25 of the main authorized operators operating in the country, released an official statement. In the text, ANJL presents other issues related to the increase in the tax rate on bookmakers and its risks to the market.
ANJL note
“The enactment of a Provisional Measure raising the tax rate for the fixed-odds betting sector from 12% to 18%, resulting in a total tax burden of over 50%, seriously compromises the sustainability of the legally constituted sector.
Companies that believed in the regulatory process – which began in January 2025, invested R$30 million in grants and continue to strictly comply with legal requirements.
However, they will face a scenario of economic unviability. The foreseeable effects are: operator evasion, retraction of investments, demobilization of formal jobs and the increase in illegality, with direct impacts on legal security and the fight against organized crime. The proposal, in practice, penalizes those who operate legally and favors informality, compromising not only tax collection, but also public policies financed by the sector, such as sports and health.
The National Association of Games and Lotteries (ANJL) represents around 25 of the main authorized operators operating in the country and reaffirms its full willingness to engage in responsible and qualified institutional dialogue with the Federal Government. It is essential that any regulatory change be constructed with predictability, balance and respect for the regulatory environment that is being consolidated in Brazil.”
