Senator proposes gradual increase in online gambling taxation to compensate states and municipalities.

Senator Eduardo Braga (MDB/AM) released a Supplementary Vote Report on Bill 5473/25 this Wednesday (26), altering the proposed taxation for the fixed-odds betting sector in Brazil. The document establishes a phased model for the social contribution on Gross Gaming Revenue (GGR), replacing the immediate increase to 24% that was initially planned.

The new proposal sets a rate of 15% for 2026 and 2027, which will increase to 18% from 2028 onwards. The text partially incorporates Amendment No. 170 and modifies the original bill, which would have doubled the current rate of 12% established by Law No. 13.756 of 2018.

The Senate Economic Affairs Committee (CAE) is trying to vote, at the meeting this Wednesday (26) scheduled to start at 10 am, once again, on the bill that increases taxation on sports betting and raises the Social Contribution on Net Profit (CSLL) of fintechs and banks, as reported by Globo Online. The analysis was initially scheduled for last week, but was postponed due to a lack of agreement with the Chamber of Deputies.

Compensation for states and municipalities

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).

“A sharp increase would harm legally operating companies that already pay taxes,” the rapporteur said in the document. Braga expresses concern about the impact a sudden increase could have on companies operating legally.

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.

“In this sense, we present a set of rules that we believe are relevant to combating the irregular exploitation of fixed-odds betting, focusing on protecting bettors, strengthening the popular economy, and guaranteeing the integrity of the sector,” Braga stated in his report.

The senator explains that the GGR corresponds to the proceeds from betting revenue after deducting prize payments and income tax levied on the winnings.

"While we understand the change to be legitimate, we also believe that the percentage should be measured cautiously, taking into account the current situation, described above, of difficulty in regulating and overseeing the sector," the rapporteur stated.

The original bill, authored by the president of the CAE (Committee on Economic Affairs), Renan Calheiros (MDB-AL), doubles the tax on betting from 12% to 24% and increases the CSLL (Social Contribution on Net Profit) from 9% to 15% for fintechs and from 15% to 20% for banks. The proposal complements Bill 1.087/2025, which creates a new income tax exemption bracket for those earning up to R$ 5 per month.

Stricter criteria for operation

The document establishes that the additional resources collected from the tax rate increase will be directed towards social security expenses in the states and municipalities. "With respect to the fiscal years 2026 to 2028, the 3% or 6% increase will be allocated, partially or entirely, to the States, the Federal District, and the Municipalities to cover social security expenses," the text details.

In addition to changes in taxation, the report proposes stricter criteria for authorizing betting operations. The Ministry of Finance may deny authorizations when there are doubts about the integrity of the administrators and controllers of the companies.

“On the other hand, our proposal establishes clearer criteria for authorizing betting operations, reinforcing that the Ministry of Finance may deny authorizations when there are doubts about the suitability of administrators and controllers,” Braga said in the document.

The report foresees 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.

The text also establishes the liability of individuals or legal entities that disseminate advertising in favor of companies that operate illegally in the sector. "It is further proposed that individuals or legal entities that disseminate advertising or publicity in favor of companies that operate illegally be held liable," the document states.

Since the initial reading of the report earlier this month, when a collective request for review postponed the vote, the rapporteur has been negotiating changes with the Treasury and with senators resistant to the calibration of the tax rates. The main controversy involves the impact of taxation on the sector and the adoption of a floor for the effective tax burden on financial institutions — a proposal defended by Senator Carlos Portinho (PL-RJ) and inspired by a technical suggestion from former Central Bank president Roberto Campos Neto.

Financial institutions will face new obligations, including the preparation of semi-annual compliance reports detailing accounts, transactions, and internal controls related to betting operators. These reports will be public and electronic, in accordance with the General Data Protection Law.

The Central Bank will regulate mechanisms to prevent the misuse of Pix by unauthorized operators, including automatic filters and visual markings on statements. Financial institutions will also integrate systems for sharing information on electronic fraud.

The report proposes the creation of the Gambling Regulatory Compliance Index (ICRA), which will assess the degree of adherence of institutions to regulations preventing illegal gambling. This index could serve as a criterion for regulatory benefits or restrictions.

Failure to comply with the new rules will result in administrative sanctions, such as fines of up to R$ 50 per irregular operation and temporary suspension of services provided by operators. "The goal is to create a more agile and effective inspection network, capable of preventing the spread of illegal operations," the report highlights.

The new rules consolidate texts already discussed in the National Congress, including what was debated in the Joint Committee of Provisional Measure No. 1.303 of 2025, with partial acceptance of Amendments Nos. 8-T, 9-T and 154.

The bill is being processed in a conclusive manner in the CAE (Committee on Economic Affairs). If approved, it goes directly to the Chamber of Deputies, unless eight senators file an appeal to bring the proposal to the plenary. The session is scheduled for 10 am and also includes other economic topics, among them the bill that creates the "Super MEI" category, raising the annual revenue limit for individual micro-entrepreneurs to R$ 140.

If confirmed, the vote could unlock one of the government's fiscal pillars for 2026, which relies on extra revenue from fintechs, banks, and sports betting to enable the new income tax exemption bracket and balance next year's budget. Another concern is the fate of the text in the Chamber of Deputies. Braga believes that any changes approved in the Senate need to be closely monitored by the leaders of the other House to avoid distorting the project—especially after the recent experience of Provisional Measure 1.303, which dealt with the same issue, expired, and left the government without a legislative alternative.

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