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The Federal Government of Brazil recorded significant revenue growth from the betting and gaming sector, collecting approximately BRL 6.8 billion (USD 1.26 billion) from January to September 2025, according to the Federal Revenue Service notified on October 23, according to numbers published. The figure comprises not just taxes collected for the Gross Gaming Revenue (GGR) of betting sites but also other taxes that are applicable and remitted by operators in the industry.
Solid September Performance
The sector benefited the coffers with an estimated BRL 1.2 billion (USD 222 million) in taxes alone in September. The federal Revenue Service highlighted in its report the “good performance of financial institutions and the growth of gambling and betting activities“, which it largely credited to recent legislative changes that expanded taxation and regulation of online gaming platforms.
The full report published by the Federal Revenue Service provides a minute-by-minute breakdown of the sources of revenue and shows the continued formalization of Brazil’s authorized gambling industry as the government’s regulatory framework began to take concrete form.
The Context of Ongoing Fiscal Debate
The release of the numbers is at a delicate moment, with the federal government seeking to consider alternative methods of increasing tax collection from gambling operators following the expiry of Provisional Measure (MP) 1.303. MP 1.303 initially proposed increasing the taxes on gambling operators, but was subsequently changed to have in place measures of retroactive collection of the taxes. The Chamber of Deputies withdrew the bill from the legislative agenda on October 8, allowing it to expire without approval.
In response, pro-government legislators have turned to new legislative efforts aimed at ensuring tax harmony and fiscal soundness in the expanding gaming industry.
New Legislative Move: Doubling the Tax Rate
On October 22, the Finance and Taxation Commission of the Chamber of Deputies voted in favor of an urgent motion to advance Bill No. 5.076/2025, whose purpose is to double the tax rate levied on online betting activity, from 12% to 24% of GGR.
The law, introduced by PT party leader Lindbergh Farias (RJ), after the government’s MP 1.303 failed, seeks to stabilize federal revenues and continue regulation of the rapidly growing betting market.
One justification that is added to the appeal for urgency emphasizes the need for speedy consideration: “The bill fits into a broad national debate, notably about federal involvement in the industry, and must be attended to as quickly as possible so that it does not duplicate rules and create legal clarity for existing measures.”
The urgency motion, backed by 34 deputies from across the ruling Workers’ Party (PT) and opposition Liberal Party (PL), allows the bill to bypass some of the traditional procedural hurdles.
On the Road to a Quick Decision
With the urgent label greenlit, the proposal shall immediately proceed to the Board of Directors of the Chamber, and may be scheduled for a plenary vote without undergoing prior committee deliberations. The procedural shortcut reflects the government’s determination to exercise fiscal discipline and impose tighter regulatory control on the fast-growing iGaming sector.
The debate about the gambling tax is a burning issue within Brazil’s economic and political circles as lawmakers balance bringing in more public revenue against the risk of overwhelming an industry that has quickly developed into one of the nation’s leading contributors to the economy.
If approved, the new 24% GGR tax would effectively double the contribution of the industry to the Treasury, catapulting betting taxes into one of the largest sources of non-traditional revenue for Brazil’s federal budget in 2026.
Source: YogoNet
