Brazil president approves gradual tax rise on gambling operators
Summary
Brazil’s president, Luiz Inácio Lula da Silva, has signed Complementary Law No 224, triggering a phased increase in taxes on gambling operators. The tax on gross gaming revenue (GGR) will rise from the current 12% to 13% in 2026, 14% in 2027 and reach 15% from 2028 onwards. Alongside the GGR rise, a social security contribution will be introduced (1% in 2026, 2% in 2027 and 3% in 2028), and the law establishes joint tax liability for parties that advertise or do business with illegal betting sites.
The new law forms part of broader fiscal measures that cut federal tax benefits for several sectors by 10%. There is a constitutional 90-day waiting period before tax increases take effect, giving operators a short breathing space before the first step-up applies. Separately, a proposed 15% tax on player deposits (CIDE-Bets) approved by the Senate plenary is still subject to further scrutiny in the Chamber of Deputies and could add significant additional burden if enacted; the levy is projected to raise roughly BRL30 billion annually. The debate also revisits previous proposals for a retrospective levy on activity from 2018–2024.
Key Points
- Complementary Law No 224 raises the GGR tax progressively: 13% (2026), 14% (2027), 15% (2028+).
- Social security contributions will be introduced alongside the tax rise: 1% (2026), 2% (2027), 3% (2028).
- The law imposes joint tax liability on advertisers and financial/payment firms that work with unlicensed operators.
- A constitutional 90-day waiting period applies before new or increased taxes take effect, delaying the 13% rate briefly.
- A separate proposed 15% CIDE-Bets tax on player deposits — expected to raise ~BRL30bn — remains under legislative review and could further hit operators’ margins.
- The industry also faces the prospect of retrospective levies (RERCT Litígio Zero Bets) on 2018–2024 activity, creating additional uncertainty.
Context and relevance
This change comes after Brazil moved to regulate online gambling (effective 1 January 2025) and follows intense parliamentary negotiations over competing bills proposing even higher rates. For operators, suppliers and payment partners the measures materially affect unit economics, compliance risk and marketing strategies. The joint-liability clause extends enforcement risk beyond operators to advertisers and financial institutions, which could alter commercial relationships and payment processing arrangements.
Policywise, the tax increases form part of broader fiscal consolidation and public-security funding moves; the outcome of the CIDE-Bets debate will determine whether licensed channels face a further sharp cost increase. Legal and financial planning for market participants will be crucial as the fiscal landscape continues to settle.
Why should I read this?
Short version: if you work in Brazil’s gambling ecosystem — operator, supplier, payments or marketing — this directly hits your P&L and contracts. Lula has signed a law that nudges taxes up over three years, then there’s a potentially much bigger deposit tax still loitering in the legislature. Read this so you know the timeline, the extra compliance risks (joint liability) and the real upside/downside for revenue channelisation.