UPDATE: Brazil has just announced significant changes to its gambling tax structure, with the Senate approving a new bill that raises taxes on sports betting while delaying the legalization of land-based casinos. This decisive move highlights the government’s cautious approach towards gambling reform amid rising fiscal pressures.
Late yesterday, the Brazilian Senate passed bill PLP 128/2025 with a resounding vote of 62 to 6. The legislation will gradually increase taxes on fixed-odds sports wagering, moving from the current 12% tax on gross gaming revenue (GGR) to 13% in 2026, 14% in 2027, and ultimately 15% by 2028. This is a notable uptick from the previously discussed target of 18% but still reflects a significant burden on licensed operators.
The immediate impact is clear: operators will experience a 10% reduction in tax incentives, split over the next two years, driving costs higher even before the new tax rates kick in. The government plans to channel some of the additional revenue into crucial social security and public health initiatives, addressing public concerns about fiscal responsibility.
Despite this push for increased tax revenues, the future of physical gambling venues remains uncertain. The Senate has just rejected a motion to fast-track bill PL 2.234/2022, which sought to legalize casinos and other forms of gambling. This decision came after a narrow vote of 36 to 28, signaling a contentious environment around land-based gambling in Brazil.
Opponents of the casino legislation, notably the Evangelical Caucus, argue that legalizing physical gambling could lead to increased addiction rates and facilitate criminal activities, including money laundering and human trafficking. Senator Eduardo Girão described the proposal as “deeply polarizing,” emphasizing the need to weigh economic benefits against societal costs.
On the other hand, supporters claim that allowing casinos could significantly boost tourism and generate essential tax revenues, especially for Brazil’s economically struggling regions. As the government navigates these conflicting interests, it is clear that a balanced approach is crucial.
With the Senate’s approval now in hand, the bill moves to the desk of President Luiz Inácio Lula da Silva for final consideration. The political climate suggests that careful deliberation will continue as lawmakers weigh the economic potential of gambling reform against its social implications.
As developments unfold, stakeholders in Brazil’s gambling industry and the public alike are urged to stay informed about the evolving landscape of gambling legislation. The decisions made in the coming weeks will have lasting effects on Brazil’s economy and social fabric.
Stay tuned for updates!
