Brazil has approved a gradual increase in taxes for licensed gambling operators, following the signing of Complementary Law No. 224 by President Luiz Inácio Lula da Silva. The law raises the tax on gross gaming revenue from the current 12% to 13% in 2026, then to 14% in 2027, and finally to 15% from 2028. Although the law has come into force, Brazil’s constitution requires a 90-day waiting period, meaning the higher rate will apply slightly later in 2026.

In addition to the tax increase, gambling companies will be required to contribute part of their revenue to social security. This contribution will start at 1% in 2026, rise to 2% in 2027, and reach 3% in 2028. The law also introduces joint tax liability for companies that advertise illegal betting sites, as well as for payment providers and financial institutions that work with unlicensed operators.

The approved 15% rate is lower than an earlier proposal that aimed to raise gambling taxes to 18% by 2028, which failed to progress before the end of the legislative session. However, licensed operators are still concerned about a possible tax on player deposits. In December, the Senate approved a 15% tax on deposits, but because the bill was amended, it must return to the Chamber of Deputies for further review.

If the deposit tax is approved, revenue from the new CIDE-Bets levy would go to Brazil’s National Public Security Fund and is expected to generate around BRL30bn ($5.5bn) per year. Legal experts have warned that additional taxes, especially on deposits, could reduce the number of players using licensed platforms, potentially pushing legal market participation below 20%.

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