Brazilian congressman maintains original text proposing an increase in betting taxes from 12% to 18% to fund healthcare.

Federal deputy Carlos Zarattini (PT-SP) presented this Wednesday (24) the report on Provisional Measure 1.303 of 2025, which suggests raising the tax rate charged on fixed-odds betting in Brazil from 12% to 18%. The additional 6% will be allocated entirely to financing actions in the health area within the social security system.

The collection will be carried out monthly by the sector operators, according to guidelines from the Special Secretariat of the Federal Revenue of Brazil, linked to the Ministry of Finance. The MP is valid until October 8 and must be analyzed by the special committee by next Tuesday (30), before going to a vote in the plenary sessions of the Chamber and the Senate.

New distribution of resources

The text establishes that, after the deductions foreseen in Law 14.790/23, 82% of the resources will be directed to cover the operating and maintenance expenses of fixed-odds betting lottery operators and other games, excluding lottery modalities already foreseen by law.

In addition to the 6% allocated to health through social security, another 12% will be distributed among social security, the Ministry of Education, the Ministry of Health, the Ministry of Tourism and Embratur (Brazilian Tourism Board), public security, sports entities, and civil society organizations.

The report also modifies the distribution of resources for the sports sector. The share allocated to the Ministry of Sports decreases from 22,20% to 21,20% of total revenue. In contrast, 1% will be allocated to the Brazilian Military Sports Commission (CDMB), an agency linked to the Ministry of Defense.

The CDMB coordinates the National Military Sports Subsystem (SNEM), responsible for improving sports practices in the Armed Forces and Auxiliary Forces, promoting social inclusion through sports, and coordinating actions related to military sports activities in the country.

Combating illegal betting

Provisional Measure 1.303 strengthens mechanisms to combat illegal betting, modifying Law No. 14.790/2023. Among the new provisions is the obligation for internet service providers to maintain exclusive communication channels with the sector's regulatory body.

"Internet service providers and internet application providers must maintain an exclusive, permanent, and functional communication channel with the regulatory body, intended for receiving and prioritizing the processing of the determinations provided for in this article, in order to ensure prompt handling and response times compatible with the urgency of the measures adopted," establishes the text of the provisional measure.
The document prohibits financial institutions from processing transactions with unauthorized betting companies. This prohibition includes the implementation of internal procedures to comply with this obligation and the prohibition of maintaining relationships with legal entities that operate betting activities without legal authorization.

The measure expands the scope of administrative infractions in the sector, including practices against sporting integrity: "failing to comply with legal and regulatory norms whose compliance is the responsibility of the competent administrative body to oversee; executing, encouraging, permitting, or in any way contributing to or participating in practices that undermine sporting integrity, the uncertainty of sporting results, equality among competitors, and the transparency of the rules applicable to the sporting event, and any other form of fraud or undue interference capable of affecting the fairness or soundness of conduct associated with the proper performance of the sporting activity."

The text establishes sanctions for those who advertise unauthorized betting, including administrators or members of the board of directors of companies subject to the jurisdiction of the Ministry of Finance. The penalties also apply to anyone who carries out any form of advertising in the media for agents engaged in betting-related activities without proper authorization.

Economic and social impact

The increase in the tax rate from 12% to 18% could result in an additional R$ 4,8 billion in annual revenue for the health system, according to preliminary calculations by the Ministry of Finance. These resources will be fundamental to strengthening primary and specialized care programs within the Unified Health System (SUS) and for treatment policies for gambling addiction, to be implemented by the Ministry of Health in partnership with specialized organizations. Studies cited in the report indicate that approximately 2% of regular gamblers develop addictive behavior, requiring specialized support.

The report also predicts the end of the exemption for Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA). The document also addresses the granting of unemployment insurance to artisanal professional fishermen, expanding the scope of the Provisional Measure beyond the betting sector.

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CHAPTER IX

Regarding other changes in legislation

Section I

Fixed-odds betting

Article 61. Law No. 13.756, of December 12, 2018, shall enter into force with the following amendments:

“Article 30. …………………………………………………………… ………………………………………………………………………

§ 1º-A Of the proceeds collected after deducting the amounts referred to in items III and V of the heading of this article, 82% (eighty-two percent) shall be allocated to cover the operating and maintenance expenses of the lottery operator for fixed-odds betting and other betting games, excluding the lottery modalities provided for in this Law, and 6% (six percent) shall be allocated to social security.
for actions in the health sector, without prejudice to the allocation foreseen in item IV-A, and 12% (twelve percent) will have the following allocations:
...................................................................................

III - ………………………………………………………………… ..

h) 21,20% (twenty-one and twenty hundredths percent) to the Ministry of Sport;

..................................................................................

k) 1,00% (one percent) for the Brazilian Military Sports Commission of the Ministry of Defense, coordinator of the National Military Sports Subsystem (SNEM), as provided for in Article 32 of Law No. 14.597, of June 14, 2023.

..................................................................................

§ 9 The contribution referred to in item IV-A and the heading of § 1-A of this article shall be calculated and collected by the operating agents, monthly, in the manner established by the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance, in the exercise of the powers referred to in art. 2 of Law No. 9.003, of March 16, 1995.

………………………………………………………………” (NR)

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Section IX

Combating the unauthorized operation of fixed-odds betting lotteries

Article 72. Law No. 14.790, of December 29, 2023, shall enter into force with the following amendments:

“Article 17. ………………………………………………………………………………………………………………………………………………….

§ 6. Internet connection and internet application providers must maintain an exclusive, permanent, and functional communication channel with the regulatory body, intended for receiving and prioritizing the processing of the determinations provided for in this article, in order to ensure prompt treatment and response times compatible with the urgency of the measures adopted.” (NR)

“Article 21. …………………………………………………………….

Sole paragraph. The prohibition mentioned in the main clause includes:

I – the implementation of internal procedures for fulfilling this obligation;

II – the prohibition of maintaining relationships with legal entities that operate fixed-odds betting without authorization as provided for in this Law; and

III – the communication of data provided for in regulations issued by the Ministry of Finance.” (NR)

“Article 39. ………………………………………………………………………………………………………………………………………………….

VII – to fail to comply with legal and regulatory standards whose enforcement falls under the responsibility of the competent administrative body to oversee;

VIII – to execute, encourage, permit or, in any way, contribute to or participate in practices that undermine the integrity of the sport, the uncertainty of the sporting result, the equality between competitors and the transparency of the rules applicable to the sporting event, and any other form of fraud or
undue interference capable of affecting the fairness or integrity of conduct associated with the proper performance of the sporting activity; and

IX – Failure to comply with the provisions of Article 21 and its regulations.

………………………………………………………………..” (NR)

“Article 40. …………………………………………………………………………………………………………………………………….

II – act as administrators or members of the board of directors, the administrative board, or other bodies provided for in the bylaws of a legal entity subject to the jurisdiction of the Ministry of Finance, in accordance with the provisions of this Law; and

III – directly or indirectly carry out any form of advertising or publicity in physical or virtual media for an agent who, without proper authorization, engages in activities related to fixed-odds betting.” (NR)

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Check out the full report presented by Congressman Carlos Zarattini.

IBJR criticizes tax increase in report on Provisional Measure 1.303 regarding betting.