Retroactive taxes on the table for Brazil’s betting market

Retroactive taxes and rate hike on the table for Brazil’s betting market

Added:
Retroactive taxes and rate hike on the table for Brazil’s betting market

The Brazilian government is considering retroactive taxes on sports betting operators, a move that could bring in up to R$12.6 billion (US$2.3 billion).

The idea is being reviewed by a joint group from the Federal Revenue Service and the Ministry of Finance’s Prizes and Betting Secretariat.

During a Senate inquiry on betting in March, Federal Revenue Secretary Robinson Barreirin has backed the idea of retroactive charges, arguing that companies active in Brazil before regulations were in place still owe taxes on past profits and revenues.

The Ministry of Finance has confirmed that a working group is studying the matter, with its recommendations set to guide the Federal Revenue’s stance on any retroactive collections.

According to the Federal Revenue’s 2025 Annual Oversight Report, fixed-odds betting is considered a structural priority. The report calls for stronger compliance measures and clearly separates licensed operators from those working outside the law.

Finance Minister Fernando Haddad has repeatedly criticized the betting sector, accusing operators of dodging more than R$40 billion (US$7.35 billion) in taxes during the unregulated period.

Earlier this year, Fernando Haddad remarked:

“There is no tax revenue that justifies the mess we’ve gotten ourselves into.”

The push for retroactive taxation comes as Congress weighs a Provisional Measure to raise the betting tax rate from 12% to 18%. The government estimates the increase could bring in an extra R$284.94 million (US$52.4 million) in 2025 and around R$1.7 billion (US$312 million) annually in 2026 and 2027.

Lilit Sarinyan
Lilit Sarinyan Content Writer

With a degree in English and Communication, I focus on direct reporting that turns industry changes into clear, accessible insights. Interviews with iGaming professionals, regional market overviews, casino traffic trends, and affiliate developments are at the center of what I do, looking at how the iGaming industry is developing and where it is headed.

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