Now, the decision moves to Brazil’s president. He will determine whether to implement a gradual tax increase for betting operators.
Following Senate approval, the government will raise tax rates for Brazil’s licensed gambling sector.
Recently, the Senate plenary approved a bill to reduce federal tax benefits for several sectors by 10%. The bill also raised the tax rate on betting operators, passing with a 62-6 vote. The Senate’s approval, in the early hours of Wednesday, came just 24 hours after the Chamber of Deputies passed the measure.
Under bill PLP 128/2025, the tax rate on GGR will increase from the current 12% to 13% in 2026. The tax rate will rise further to 14% in 2027 and 15% in 2028.
With the other half directed to healthcare initiatives, half of the increase will go towards social security.
PLP 128/2025 will also impose joint liability for tax payments on those who advertise illegal betting sites. It will extend to institutions, such as financial and payment companies, that work with unauthorized operators.
Now, the bill will go to President Luiz Inàcio Lula da Silva for final approval. Most provisions of the bill will take effect at the start of 2026, if the law is enacted.
However, under Brazil’s constitution, new or increased taxes take effect only after a 90-day period from the date of publication. This means operators will have a brief respite before paying the 13% rate.
With PL 5,473/2025 outlining an 18% rate for operators by 2028, the eventual tax rate of 15% is lower than that approved by the Senate Economic Affairs Committee in early December.
PLP 128/2025 is a political operation by the government after a number of politicans moved to force further analysis by the Senate plenary.
