The new 18% tax on sportsbooks will come into effect on October 1, 2025. This was announced by the Ministry of Treasury on the evening of last Thursday (12).
The measure is a determination of the government’s economic team. The proposal is to increase the tax from 12% to 18% on the GGR (Gross Gaming Revenue) of betting companies. This is the gross revenue obtained by the platforms, that is, the total collected from bets minus the amount paid in prizes to players.
The measure is included in the Provisional Measure (MP) with alternatives to the decree that increased the Tax on Financial Transactions (IOF).
The government estimates that the new tax rate has the potential to increase revenue by R$284.94 million in 2025 and R$1.7 billion next year. For 2027, the Ministry of Finance also projects revenue in the range of R$1.7 billion.
In total, the economic ministry estimates that the set of alternative measures provided for in the MP could raise around R$31.4 billion by 2026. Of this total, around R$10.5 billion should be raised in 2025 and another R$20.9 billion in 2026.
Increased taxation threatens legalized sporsbooks
The proposal to increase the tax burden on fixed-odds sports betting in Brazil has generated strong concern among representatives of the regulated sector.
The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) established a commitment to collaboration this Thursday (12), shortly after the controversial decision by the Federal Government.
The two institutions together represent 95% of the Brazilian regulated market. The objective of the agreement is to protect the legalized betting segment in the national territory.
Currently, Plínio Lemos Jorge heads the ANJL while Fernando Vieira presides over the IBJR. The leaders of both entities signed the agreement in São Paulo.
The segment claims that this tax increase threatens the financial sustainability of duly licensed companies. Authorized brands are expected to generate more than R$4 billion in taxes during 2025. This amount represents a significant contribution to the national treasury.
ANJL note
Check out the note issued by ANJL that corroborates the sector’s position. Among other points, the entity stated that the measure could have negative effects on the sector, such as operator evasion, retraction of investments and demobilization of formal jobs.
“The possible 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.”
Plinio Lemos Jorge,
President of ANJL
