Betting associations have spoken out against the increase in the tax rate on bookmakers’ revenues, recently announced by Treasury Minister Fernando Haddad. According to a note published by six representative entities, the increase in the tax burden for the sector is considered “unjustifiable”.
The minister’s announcement stated that one of the alternatives to the IOF (Tax on Financial Transactions) decree would be to increase the rate from 12% to 18% on the revenue of companies in the sector.
Document from betting associations opposing the tax increase
Before the official announcement, the associations released a document opposing the tax increase. The text mentions that the segment currently has 79 authorized operators, who have already invested more than R$2.4 billion in concessions to begin their operations in Brazil. Check out the full manifesto.
In the note, the representatives stated: “the expected tax and social contribution for the year 2025 exceeds R$4 billion, with allocation to strategic areas such as sports, health, public safety, tourism, education and social security”. The associations added: “It is unjustifiable — from any technical, economic or public policy perspective — to impose new tax burdens on a sector that is already extremely burdened and contributes significantly and responsibly to the country, under penalty of making the activity unviable”.
The new taxation model, proposed by the Ministry of Treasury, will focus on the so-called GGR (Gross Gaming Revenue). In other words, this basis corresponds to the difference between the amount collected from bets and the amount paid in prizes.
Furthermore, Fernando Haddad stated that the sector had been without “discipline” for a long time. Therefore, he stated that the first official release of data for the segment in the country will be presented.
According to Haddad, “we will present the first data collected from the regulation of betting, present to the country the size of this market, how it is organized”.
Commitment to betting law
The sector emphasizes that, since the new law on sports betting came into effect, it has demonstrated its commitment to legality and national economic development. It also reported that licensed operators operate under a very high tax structure. Among the taxes are:
- Up to 26% on operators’ gross revenue (12% Gaming Tax, 9.25% PIS/COFINS and up to 5% ISS);
- 34% on profits (25% IRPJ and 9% CSLL);
- Monthly inspection fee that can reach R$2 million per operator.
According to data from the Ministry of Finance, revenue from the inspection fee on online betting was R$21.4 million in the first quarter of 2025.
Among the entities signing the note are:
- Associação Brasileira de Jogos e Loterias
- Associação de Bets e Fantasy Sports)aigaming.com.br
- Associação Internacional de Gaming
- Associação Nacional de Jogos e Loterias
- Instituto Brasileiro do Jogo Responsável
- Instituto Brasileiro Jogo Legal
The associations also point out that the tax reform approved the Selective Tax, known as the Sin Tax, on betting.
Although the rate is still subject to definition by the Legislature, the new tax brings the total tax burden of the sector closer to 50%. In the assessment of the representatives, this scenario could compromise the economic viability of the regulated online gaming market in the country.
