Senate Committee approves gradual increase in taxation of online betting.
The Senate Economic Affairs Committee (CAE) approved the report that establishes tiered taxation for the fixed-odds betting sector in Brazil. The decision took place this Tuesday (2), with 23 votes in favor and only one against, from Senator Wilder Morais.
The text, reported by Senator Eduardo Braga (MDB/AM), amends Bill 5473/25 and defines that the Contribution on Gross Gaming Revenue (GGR) will increase from the current 12% to 15% in 2026 and 2027, reaching 18% from 2028 onwards. The proposal replaces the immediate increase to 24% that was initially planned.
“A sharp increase would harm legally operating companies that already pay taxes,” the rapporteur explained in his document. Braga expressed concern about the impact a sudden increase could have on companies operating legally.
The basis for calculating the tax will be the GGR, a methodology that considers the total revenue from bets minus the amounts paid in prizes to bettors. The senator explains that the GGR corresponds to the product of the revenue from bets after deducting the amounts paid in prizes and the Income Tax levied on the prize money. The resources obtained from this contribution will be allocated to social security.
The increase in taxation will be used to compensate states and municipalities for losses in Withholding Income Tax (IRRF) revenue resulting from the Income Tax Reform (PL 1.087/2025). The document establishes that the additional resources collected from the rate increase will be directed to social security expenses in states and municipalities.
Senator Eduardo Braga (MDB/AM) released this Tuesday (2) a new Complementary Vote Report , altering the proposed taxation for the fixed-odds betting sector in Brazil. The new document maintained the phased increase in the sector's tax rate to 18%, as well as the provisions to combat illegal bets.
During the session, after intense debates and in the face of the possibility of a new request for review, the government leader in the Senate, Jaques Wagner (PT-BA), proposed maintaining the report presented by the rapporteur last Wednesday (November 26), a suggestion that was accepted by the members of the committee.
The bill also establishes stricter criteria for authorizing companies wishing to operate in the betting sector and includes specific mechanisms to combat irregular operators in the Brazilian market. The Ministry of Finance may deny authorizations when there are doubts about the integrity of the companies' administrators and controllers.
The report points to the existence of a money laundering problem using irregular betting platforms and fintech companies. Estimates indicate that amounts between R$ 50 billion and R$ 150 billion circulate through banks via PIX without adequate oversight from COAF, the Central Bank, or the Federal Revenue Service.
The text provides for the creation of a direct communication channel with internet connection and application providers to enable the removal of advertising content that violates the law. Companies will have up to 48 business hours to remove irregular content. It also establishes the accountability of individuals or legal entities that disseminate advertising in favor of companies that operate illegally in the sector.
Financial institutions will face new obligations, including the preparation of semi-annual compliance reports detailing accounts, transactions, and internal controls related to betting operators. The Central Bank will regulate mechanisms to prevent the misuse of Pix by unauthorized operators.
Bill 5473/25, authored by Senator Renan Calheiros (MDB-AL), is being processed in a conclusive manner in the CAE (Committee on Economic Affairs). If there is no appeal from at least eight senators to bring the proposal to the plenary, the text will go directly to the Chamber of Deputies for analysis.
Illegal bets
The rapporteur, Eduardo Braga, included an entire chapter with rules for combating illegal betting. Among the points are:
⇒ Requirement to provide proof of suitability for authorization;
⇒ Blocking/preventing suspicious financial transactions;
⇒ Quarterly public reports on betting;
⇒ Specific PIX rules against misuse;
⇒ Creation of the Regulatory Compliance Index for Betting (ICRA);
⇒ Fines of up to R$ 50 for incidents;
⇒ Holding individuals or legal entities accountable for disseminating advertising or promotion of illegal betting;
⇒ Internet companies have up to 48 hours to remove illegal content.
Fintechs and payment institutions will have to prepare semi-annual compliance reports, detailing accounts, transactions, and internal controls related to betting operators.
Processing in the Chamber
In the Chamber of Deputies, the Speaker, Representative Hugo Mota (Republicanos-PB), will define the procedural steps, which may involve sending the bill to thematic committees or taking it directly to the plenary session. If the representatives make modifications, the text will return to the Senate for further review.
Any new tax rate for the sports betting and online gaming sector will only come into effect on the first day of the fourth month after the law is published, respecting the principle of the ninety-day tax period.
The National Congress has a tight schedule until the parliamentary recess, which begins on December 22nd. Only three weeks and six legislative sessions remain, scheduled for December 2nd, 3rd, 9th, 10th, 16th, and 17th.
In addition to adjusting the taxation of betting, lawmakers still need to vote on the 2026 Budget, analyze fiscal adjustment projects of interest to the government, and conclude the voting on the "Anti-Faction Bill" before the recess.
