On January 1, 2025, the entry into force of the regulated betting regime in Brazil marked a historic milestone. In the first six months, the Federal Revenue Service (RFB) collected R$3.8 billion (approximately US$650 million) in taxes from licensed operators. This figure confirms the scale of the emerging regulated market, but quickly raises concerns about the tax burden on the companies involved.
How was the tax structure developed?
The initial regime, provided for in the 2023 regulatory law, set a rate of 12% on operators’ gross gaming revenue (GGR), supplemented by a 15% tax on players’ winnings above R$2,824 (US$508.05).
A controversial increase to 18% of GGR
In June 2025, at the instigation of Finance Minister Fernando Haddad, the government issued a provisional measure to increase the rate to 18% of GGR, a 50% increase over the original rule. This measure took effect immediately but remains subject to formal approval by the Senate and Chamber of Deputies before becoming permanent.
Professional associations in the sector, including the IBJR, are warning of a possible adverse effect. They also point out that many companies have built their business models on the initial rate of 12% and are concerned about their financial viability in the face of this tax reform.
Udo Seckelmann, head of gambling and cryptocurrencies at Brazilian law firm Bichara e Motta Advogados:
“Excessive charges or disproportionate restrictions could push consumers and operators toward unregulated alternatives, which would ultimately reduce tax revenues.”
In the first few months of 2025, the illegal market was operating at an estimated rate of between R$6.5 billion and R$7 billion per month (approximately €1 billion), outside of state control. This persistent imbalance is fueling fears of a shift from legal activity to unregulated platforms, encouraged by taxation that is considered too heavy.