A plan to progressively increase Brazil’s gross gaming tax rate between 2026 and 2028 has been approved by the Senate’s Economic Affairs Committee (CAE). Under the proposal, the rate imposed on gross gaming revenue (GGR) will climb from 12 per cent to 15 per cent in 2026 and 18 per cent by 2028.
Following an earlier plan that would have increased the tax rate to 24%, the gradual method described in Bill 5,473/2025 is viewed as a compromise. In order to finance welfare measures, President Luiz Inácio Lula da Silva and Finance Minister Fernando Haddad have supported an increase in gaming taxes. Lula has allocated R$300 billion for social programs in 2026.
The updated proposal was developed by senator Renan Calheiros (MDB-AL) and reported by Eduardo Braga (MDB-AM). It must still proceed to the Chamber of Deputies for study unless there is an appeal for a vote in the plenary.
The amount paid to bettors as prizes is subtracted from the total amount collected by platforms in order to calculate the tax. This is the principal tax applied to regulated betting in Brazil, and the hike is expected to put pressure on operating margins, especially for operators who are still organizing their entry into Brazil’s regulated online betting market, which was only opened at the start of this year.
Priority will be given to health programs when allocating the funds to social security. However, in order to make up for losses brought on by income tax exemptions for public employees, the federal government may transfer a portion of these funds to states, municipalities, and the Federal District between 2026 and 2028.
New concept for state lotteries:
Meanwhile, federal deputy Fernando Marangoni has presented Bill No. 5,982/2025, which proposes a single regulatory framework for state and municipal lotteries in Brazil. The proposed proposal covers standards on governance, licensing, integrity, technology, player protection and resource allocation for activities at the subnational level.
With regulations for governance, financial transparency, and revenue distribution, the Legal Framework for State and Municipal Lotteries seeks to standardize the establishment, management, supervision, and funding of regional lotteries. Once the law goes into effect, states and municipalities that now run lotteries will need to modify their operations to conform to national standards.
