Brazil's Regulated Betting Sector Sees October Tax Haul Drop by 9.4%

Brazil's licensed wagering industry has funneled nearly BRL 8 billion into public coffers since its official rollout on January 1.

In October, the sector delivered BRL 1.09 billion ($202.7 million) in taxes, marking a decline from the prior month's BRL 1.21 billion, according to the latest Federal Revenue Service bulletin released Monday—a 9.4% shortfall.

Despite the dip, cumulative contributions for the year now stand at BRL 7.95 billion, underscoring the substantial economic gains from the regulated framework introduced at the year's start.

Senate Panel Poised to Weigh Tax Hike on Betting Wednesday

The fiscal landscape for Brazil's overseen betting operations may shift soon, as the Senate's Economic Affairs Committee gears up for a Wednesday vote on elevating the gross gaming revenue (GGR) levy from 12% to 24% via bill PL 5,473/2025.

Operators already shoulder additional levies, pushing their effective tax burden above 40%. Approval would send the measure directly to the Chamber of Deputies, barring a push for full Senate review.

Resistance is mounting, with an earlier vote delayed after Chamber President Hugo Motta signaled insufficient backing for passage.

Administration Presses Forward on Gambling Levy Escalation

Facing elections in 2026, President Lula's government seems resolute in ramping up gaming taxes to meet budgetary goals, following a recent stumble when a provisional decree for a 50% surge was shelved.

iGaming consultant Elvis Lourenço, from EX7 Partners, attributes the swift rebound to political optics: "It was a humiliating loss, so they pivoted quickly. This slots into campaign rhetoric—hiking levies on 'billionaire gamblers' plays well in our somewhat traditional society, rallying voter support."

Lourenço cautions that a doubling to 24% would be "reckless," potentially destabilizing the nascent regulated ecosystem.