President Luiz Inácio Lula da Silva has expressed a firm position on the need to increase taxation on online sports betting companies. During the launch of the 2025/26 Harvest Plan, held this Tuesday (01), Lula criticized the betting sector and defended a fairer tax collection.
The Chief Executive argued that betting platforms make significant profits without contributing significantly to the generation of national wealth. Meanwhile, productive sectors such as agribusiness bear high costs to produce and create jobs.
Lula declared: “The cost of raising cattle is very high compared to the profit of someone who has a Bet. These companies have almost no costs, earn millions and refuse to pay taxes. This is not fair.”
Tax justice proposal
The president linked the issue to the income tax exemption project. According to him, while the government seeks to benefit workers who earn up to R$5,000 per month, it becomes necessary to charge more from those who make high profits.
The proposal aims to use resources from increased taxation on online gambling to finance essential public policies. Among them, investments in education and income transfer programs stand out.
Lula stated: “We are asking that around 140 thousand people pay a little more tax to benefit 10 million Brazilians.”
During the event, the president also emphasized that the tax reform under discussion seeks to correct historical distortions.
The aim is to establish a more balanced charge, reducing the burden on those who earn less and increasing it for highly profitable sectors that do not generate direct jobs.
Record revenue from the betting sector until May
However, the Federal Revenue Service recently released impressive data on revenue from the online gambling sector. In the first five months of 2025, the government recorded approximately R$3 billion in taxes from this activity.
The figures were presented by the Federal Revenue Service last Thursday (26). The amount represents a growth of over 40,000% compared to the same period in 2024, when only R$7 million was collected.
In May alone, the amounts collected exceeded R$810 million. This result represents an increase of 23,096.8% compared to the previous year.
Tax auditor Claudemir Malaquias, head of the Federal Revenue’s Tax and Customs Studies Center, explained: “As of February, we have already had the collection of the new taxation system for companies that combine fixed-odds bets.”
New regulation boosts bet collections
The significant growth in revenue is due to the entry into force of regulations on sports betting and online gaming. The legislation came into effect on January 1, 2025.
The new rules establish that betting companies must apply for licensing with the Ministry of Finance. The process requires payment of approximately R$30 million for a grant valid for five years.
Consequently, only duly authorized betting companies can continue operating in the country. These companies are also allowed to advertise their services and sponsor sports teams.
The current tax rate is 12% on gross gaming revenue. This rate, known as Gross Gaming Revenue (GGR), serves as the basis for calculating the taxes owed by sportsbooks.
Government fiscal challenges
The Federal Government faced a significant defeat at the end of last month. Congress overturned the decree that increased the IOF, creating new challenges for meeting fiscal targets.
With this decision, the government will need to find alternatives to raise or save R$20.5 billion. This amount is necessary to meet the fiscal target established in the 2025 budget.
It is worth noting that the government had already blocked or contingency-limited another R$31.3 billion in expenses this year. The situation requires new strategies to balance public accounts and maintain investments in priority social programs.
In a provisional measure (MP), the government chose to increase taxation on bets from 12% to 18%, but the sector harshly criticized this alternative due to the risk of making legal operations unfeasible and strengthening the irregular market.
