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On July 9, Brazilian federal deputy Carlos Zarattini (PT–SP), the rapporteur named for Provisional Measure (MP) 1303/2025, met with representatives from the betting sector to discuss the potential consequences of the proposed alterations to taxation for fixed-odds sports betting and online games. MP 1303/2025 raises the tax on gross gaming revenue (GGR) from 12% to 18%, a move that has prompted alarm in the industry.
The meeting took place in Brasília and gathered stakeholders from industry associations and private operators. Attendees included Ana Bárbara (ABRAJOGO), Ana Clara Barros (AIGAMING), Barbara Teles (Stake), Carla Dualib Sonnewend (SOFTWISS), Laura Morganti (BetBoom), Pedro Leal (Arko Advice), and Magnho José (Legal Gaming Institute – IJL).
Concerns about Legal and Financial Uncertainty
To the audience, the representatives expressed their concern about the abrupt tax rise and its effects on the regulated betting market. They set forth the legal and economic uncertainty generated by the six-year wait for the regulation of fixed-odds betting since its legalization in 2018, illustrating how this gap has fueled a fragmented and vulnerable market structure.
The association warned that a 50% increase in the GGR tax rate would jeopardize the business of operators that had invested in good faith under the previous regime. As it is, they estimated that the effective tax load is already close to 38% if one combines the 12% GGR tax with a 34% corporate profit tax, comprising 25% corporate income tax and 9% social contribution on net profit.
Illegal Platforms Still Dominate the Market
Another pressing issue put to Zarattini was the persistence of illegal betting websites in Brazil, which were estimated to represent 40% to 60% of the market. Delegates argued that rather than imposing higher taxation on licensed operators, the government had to get tough on unlicensed sites.
In their calculations, curtailing illegal practices can increase public revenue from BRL 6.5 to BRL 7 billion per month. Such measures, they maintain, would not only protect the legal market but also consolidate the regulatory environment and preserve public confidence.
Zarattini Open to Dialogue
Deputy Zarattini listened carefully and asked the group to submit an official paper containing all the points discussed. Without committing himself to a particular position, he said he would take into account the sector’s arguments when the mixed committee that will examine the provisional measure is formally established. He also noted that a public hearing on the matter would likely be called.
The rapporteur’s openness to negotiations is seen in a good light by industry players, who continue to push for a balanced solution considering both public revenue generation as well as the long-term sustainability of the regulated market.
Committee Installation and Legislative Timeline
The bicameral congressional committee that will examine MP 1303/2025 will be installed on Tuesday, July 15th at 2:40 PM. The installation session will also include the election of the committee’s president and vice-president.
Although official designations will be done at the session, Chamber of Deputies President Hugo Motta (Republicanos–PB) has already named Carlos Zarattini as rapporteur. Government sources also indicated that Senator Renan Calheiros (MDB–AL) will preside over the committee.
Due to the legislative recess, the committee’s detailed analysis and deliberations will take place in the second half of the year. All industry stakeholders in the betting industry will be waiting anxiously for the result, as it will directly affect their business models and future investment plans in Brazil’s new regulated gambling market.
Source: BNL Data
