Renan Calheiros presents a bill that doubles the taxation of online betting.
The day after a lunch with Finance Minister Fernando Haddad, Senator Renan Calheiros (MDB-AL) presented a bill reviving tax increases on betting and financial institutions to compensate for the loss of revenue from expanding the income tax exemption bracket, a matter under his purview.
Senator Renan Calheiros (MDB/AL) presented Bill 5473/2025 in the Federal Senate this Wednesday (29), which alters the taxation of fintechs and modifies the distribution of resources from fixed-odds betting in Brazil. The proposal also establishes the Tax Regularization Program for Low-Income Individuals (Pert-Baixa Renda) and has already been forwarded to the Committee on Economic Affairs (CAE), where it is under the rapporteurship of Senator Eduardo Braga (MDB/AM).
The text modifies Law No. 7.689/1988 and Law No. 13.756/2018, establishing new rules for the distribution of net revenue from fixed-odds betting. The main change reduces the share allocated to betting platform operators, doubles the current tax rate from 12% to 24%, and increases the resources directed towards social purposes.
"In financial terms, it is projected that the measure ( which affects betting ) will raise R$ 3,4 billion, R$ 4,8 billion, and R$ 5,1 billion, respectively, in 2026, 2027, and 2028, based on the first semester report released by the Secretariat of Prizes and Betting of the Ministry of Finance," writes the senator.
During the processing of the bill that expands the Income Tax (IR) exemption for those earning up to R$ 5 in the Senate, Renan Calheiros (MDB-AL), the rapporteur for the matter, had promised to "split" the proposal to review some points, including the increase in taxation of betting houses, the so-called bets.
The bill stipulates that, after legally mandated deductions, 76% of the revenue will be allocated to cover the operating and maintenance expenses of the betting operator. The remaining 24% will be divided into two equal parts: 12% for social security, focusing on healthcare initiatives, and 12% for other specific purposes detailed in the text.
The contribution will be calculated and collected monthly by the operating agents, as determined by the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance. For the period between 2026 and 2028, the 12% belonging to the Union and destined for social security may be redirected to the states, the Federal District, and municipalities.
These resources will serve as a compensation mechanism for potential losses in revenue from Withholding Income Tax levied on income paid by the direct administrations, autonomous agencies, and foundations of these federative entities. This measure is aligned with the tax reform foreseen in Constitutional Amendment No. 132, of December 2023.
Currently, the model implemented after regulation by Law No. 14.790 of 2023 allocates 88% of gross gaming revenue (GGR) – after deducting prizes and taxes – to platform operators, while only 12% is directed to social purposes. The proposal seeks to modify this distribution, doubling the social revenue from net GGR.
According to Calheiros' justification, the increase in social participation in the collection of bets is based on the profitability of the sector and the need for the State to create mechanisms to mitigate possible negative impacts and social costs associated with gambling in the country.
The project is structured around three fundamental pillars. The first refers to maintaining tax fairness in highly profitable sectors, focusing on fintechs. The second addresses the adjustment of taxation on the betting segment to ensure federal stability. The third pillar establishes a financial recovery mechanism for vulnerable citizens.
According to the project's justification, the proposal aims to "establish a source of compensation for the Income Reform, through the readjustment of the Social Contribution on Net Profit applied to the financial sector, the adjustment of taxation on the betting segment, and the establishment of a tax regularization program for low-income individuals."
The Tax Regularization Program for Low-Income Individuals aims to promote the economic reintegration of vulnerable Brazilians by offering them the means to regularize their tax situations. The bill is currently under amendment review by the CAE (Committee on Economic Affairs), and suggestions for changes may be submitted for the next five business days.
The project also proposes adjustments to the Social Contribution on Net Profit applied to the financial sector, a measure that, along with other initiatives, seeks to establish a source of compensation for the Income Reform.
Check out the full text of Bill 5473/2025
