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Federal Deputy Carlos Zarattini (PT–SP) has presented his draft report on Provisional Measure (MP) 1,303/2025, which suggests an increase in the tax rate for fixed-odds betting in Brazil. The bill suggests increasing the current rate to 18% instead of 12%, of which the other 6% will be channeled fully to health programs in the social security system of the country.
The bill is specific regarding timing. The MP remains in effect until October 8, 2025, but must be approved by an ad hoc committee on September 30 to then go to the Chamber of Deputies and Senate for a final vote. If passed, betting houses will be obligated to collect and pay the monthly contributions under the oversight of the Federal Revenue Service, which is within the Ministry of Finance.
Redistribution of Resources
The new amendment alters the existing revenue allocation framework set forth by Law 14,790/23. According to the text, 82% of the proceeds, after mandatory withholdings, will be used to settle fixed-odds betting operators’ and other gaming suppliers’ operating and maintenance costs.
The last 18% will be in two parts: 6% for health and 12% in various sectors like social security, education, tourism, security, civil society organizations, and sports. Curiously enough, the Ministry of Sport’s share will drop from 22.20% to 21.20%, and 1% will go to the Brazilian Military Sports Commission (CDMB).
CDMB, under the Ministry of Defense, carries out a strategic role in the National Military Sports Subsystem (Snem), enhancing sports training within the Armed Forces, social integration through sport, and incentives for military sports events across the country.
Measures Against Illegal Betting
In addition to the revenue distribution, MP 1,303/2025 has strong measures to combat illegal gambling. Internet service providers will be legally obligated to have dedicated lines of communication with regulators so that they can respond quickly to calls for compliance. The provision aims at speeding up the blocking of unauthorized platforms and strengthening the Ministry of Finance’s oversight ability.
Financial institutions will also be barred from processing transactions for unlicensed operators. Banks and payment providers will have to put internal compliance measures in place to prevent them from dealing with companies that do not have proper licenses.
In addition, the MP covers administrative offenses to include conduct that diminishes sporting integrity, including match-fixing, non-compliance with transparency procedures, and conduct that manipulates competition fairness. Promoting and advertising unlicensed betting services will also be punished in the form of penalties, including companies, directors, anthe d media.
Economic and Social Impact
According to preliminary calculations by the Ministry of Finance, the increase from 12% to 18% would generate an additional R$4.8 billion annually for Brazil’s public health system. The funds would be applied to enhance basic and specialized SUS services. A portion of the funds will also be channeled towards combating gambling addiction, which is estimated to affect 2% of regular gamblers across the nation.
The Ministry of Health will join forces with specialist bodies to enhance the prevention and treatment of problem gambling and provide vulnerable groups with an extension of gaming programs. This point emphasizes that the proposal is not only of fiscal concern, and strives to mitigate social risks from betting growth.
Broader Legislative Scope
The bill further touches upon matters that lie beyond the scope of wagering. It eliminates tax exemptions on Real Estate Credit Bills (LCIs) and Agribusiness Credit Bills (LCAs), with the aim of widening the country’s revenue base. The MP also touches upon social welfare, proposing unemployment insurance cover for artisanal fishermen, extending the provision even further.
MP 1,303/2025 is a manifestation of Brazil’s effort to harmonize fiscal needs with social protection and enforcement regulation. If approved, the bill stands to be a turning point in the country’s gambling taxation policy: not merely a government cash-cow, but as a tool of policy to fund important services and protect the integrity of sports and society.
Source: BNL Data
