Late 2025 Was Intense: What Has Changed (and What Is Still Under Discussion) in Brazil’s Betting Tax Landscape
The end of 2025 was marked by a series of legislative initiatives that directly or potentially impact the tax structure applicable to Brazil’s fixed-odds betting market. While discussions are still ongoing, several measures have already been enacted and others remain under legislative review, all of which deserve close attention.
Key highlights include:
Supplementary Law No. 224/2025
Introduces a progressive increase in the contribution levied on Gross Gaming Revenue (GGR), currently set at 12%, as follows:
- 13% in 2026
- 14% in 2027
- 15% as of 2028
Establishes joint and several tax liability for:
- financial institutions and payment service providers that enable transactions with unauthorized betting operators; and
- advertising and media outlets that promote fixed-odds betting operators without a valid license.
In practical terms, the law reinforces the need for regulatory compliance across the entire operational chain, extending responsibility beyond the licensed operator itself.
Bill No. 5,582/2025 (CIDE-Bets / Anti-Counterfeiting Bill)
Proposes the creation of a Contribution for Intervention in the Economic Domain (CIDE) at a rate of 15%.
- Levied on deposits and transfers made by bettors
- Subject to mandatory withholding at source
- Fully allocated to the National Public Security Fund
The proposed contribution is designed to be temporary, applicable during the transitional phase of Brazil’s Tax Reform, and expected to remain in force only until the implementation of the Selective Tax.
Bill No. 5,473/2025
Provides for a further increase in the GGR contribution:
- 15% in 2026 and 2027
- 18% as of 2028
In light of the enactment of Supplementary Law No. 224/2025, the political feasibility of an additional increase remains under discussion.
Bill No. 5,076/2025
Proposes a direct increase of the GGR contribution to 24%, inspired by tax models adopted in certain European jurisdictions.
The bill is currently under urgent legislative procedure in the Chamber of Deputies.
Constitutional Amendment Proposal No. 49/2025
Seeks to constitutionalize the allocation of revenues generated by betting and lottery activities to Brazil’s social security system.
By doing so, it limits the Federal Executive Branch’s discretion to reallocate these funds for other budgetary purposes.
Taken together, these initiatives signal a move toward greater fiscal and regulatory density, with effects extending beyond licensed operators to financial institutions, payment service providers, and commercial partners. In a market that is still consolidating, close technical monitoring and strategic assessment of these measures remain essential.
