URGENT UPDATE: Brazil has just raised betting taxes as lawmakers express caution regarding casino legalization. This significant move comes as the Brazilian Senate passed bill PLP 128/2025 with a decisive vote of 62 to 6, indicating a shift in the country’s gambling reform strategy.
The new legislation will immediately impact licensed operators, who will face a 10% reduction in federal tax incentives split between 2025 and 2026. The tax on gross gaming revenue (GGR) for sports betting is set to rise from 12% to 13% in 2026, then 14% in 2027, and finally to 15% in 2028. While lower than the previously discussed 18%, this increase will still significantly raise costs for operators, prompting immediate discussions on financial accountability.
The Brazilian government aims to allocate some of the increased revenue from these tax hikes to social security and public health initiatives, addressing concerns over public finance distortions due to lax oversight on tax incentives. This shift highlights a growing recognition of the need for accountability in Brazil’s gambling landscape.
However, despite the Senate’s approval of the tax hike, the future of physical gambling venues remains uncertain. Lawmakers have rejected the fast-tracking of bill PL 2.234/2022, which sought to legalize land-based casinos, bingo halls, and regulated horse-race betting, with a close vote of 36 to 28. This decision means the proposal will follow the standard legislative process, despite having previously passed the Chamber of Deputies.
Opposition to casino legalization is fierce, particularly from the Evangelical Caucus, which argues that land-based gambling poses significant risks, including addiction and potential links to crime. Senator Eduardo Girão has described the proposal as deeply polarizing, emphasizing that economic benefits should not overshadow the social costs involved.
On the flip side, supporters argue that legalized casinos could significantly boost tourism and generate essential tax revenues, especially in economically struggling regions. The Brazilian government seems to be treading carefully, balancing financial realism with the need for comprehensive changes in gambling legislation.
As Brazil navigates this complex landscape, the outcome of both tax increases and the future of casino legislation will have lasting implications for the country’s economy and social fabric. Stay tuned for further updates on this urgent matter as the situation develops.