The relationship between betting companies and the Brazilian football market is one of the arguments the sector is using to seek an understanding with the government regarding a possible tax increase.
Currently, 18 of the 20 teams in the Brazilian Série A have sponsorship contracts with betting companies for their main sponsorship space. In total, the investment made by the sector in these clubs exceeds R$1 billion in the 2025 season.
Therefore, the increase in taxation on betting companies should consequently impact the support processes for Brazilian football.
On Tuesday (11), Brazilian betting companies presented to the press a series of factors that reject the government’s proposal, which intends to increase the tax rate by 50%. Thus, going from the current 12% to 18% on the gross revenue of companies.
Furthermore, the betting market reaffirms that with the current tax rates (12%), companies should generate more than R$9 billion in revenue by the end of this year.
Why increased taxation strengthens the illegal gambling market.
The growth of the illegal betting market is also a concern generated by the tax increase. This is because illegal websites will not be impacted by this increase, and illegal gambling currently accounts for more than 50% of the betting market in Brazil.
According to entities operating in the sector, doubling the tax rate on revenue encourages the growth of illegal gambling, compromises tax collection, and threatens the sustainability of licensed operators, especially at a time when the regulated market is consolidating under the new regulatory framework.
In Congress, the Senate’s Economic Affairs Committee removed from its agenda the vote on a bill that would double the tax rate for betting establishments from 12% to 24%. This rate was proposed by a bill authored by Lindbergh Farias, the PT leader in the Chamber of Deputies.
Also in the House, the Betting Subcommittee is preparing another text, which aims not only to increase taxation but also to raise the social allocation of resources raised from betting in Brazil.
