Brazil’s regulated betting market produced almost BRL8 billion after launching on 1 January. Tax revenue from Brazil’s regulated betting market totalled BRL1.09 billion ($202.7 million) in October. September’s total exceeded this figure. The Federal Revenue Service released monthly tax data on Monday. The BRL1.09 billion marked a 9.4% decline from September’s BRL1.21 billion. Total market tax contribution reached BRL7.95 billion this year. Regulation brought significant financial gains to Brazil since 1 January.

The Brazilian Government Has Scheduled a Tax Increase Vote for Wednesday

Brazil’s regulated betting sector faces potential tax changes through Wednesday’s scheduled vote. GGR tax currently sits at 12%. Other taxes bring operators’ total rate past 40%. Wednesday’s Senate Economic Affairs Committee meeting will address PL 5,473/2025. The bill doubles the tax rate to 24%. The Chamber of Deputies receives the bill after approval. A Senate plenary appeal could change this path. The bill encounters resistance from lawmakers. Hugo Motta, Chamber of Deputies President, suggested the proposal would fail due to insufficient support.

The Brazilian Government Is Determined to Raise Gambling Taxes

Next year’s election motivates President Lula’s administration to boost gambling taxation. Fiscal targets require additional revenue. The government’s 50% gambling tax increase proposal recently failed. Officials responded immediately to this defeat. Elvis Lourenço, Brazilian iGaming analyst, described the administration’s quick reaction. The failure embarrassed the government and demanded swift action. “That’s the main reason that they struck back so fast, because it was embarrassing for them,” said Lourenço, EX7 Partners managing partner.

Gambling taxation appeals to conservative voters in upcoming elections. [Brazil]’s conservative population supports these measures. “This becomes an election agenda, because this is good for the audience and the public to get votes, because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.” The proposed tax doubling threatens the regulated market’s stability. Lourenço labelled this possible decision as “insane.”