Brazil Senate Approves Gradual Gambling Tax Hike to 15% by 2028

• The Brazilian Senate has approved bill PLP 128/2025, mandating a gradual increase in the tax rate for licensed betting operators.
• The tax on Gross Gaming Revenue (GGR) will rise from 12% to 13% in 2026, reaching 15% by 2028.
• The bill establishes joint liability for payment processors and advertisers working with illegal sites.
• President Luiz Inácio Lula da Silva must now sign the bill into law.
• A separate proposal for an 18% tax rate was sidelined, marking a small victory for operators.

Senate Votes 62-6 to Increase Betting Tax

The licensed gambling sector in Brazil is bracing for higher costs after the Senate overwhelmingly approved a measure to gradually increase the tax rate on betting operators. On Wednesday, the Senate plenary voted 62 to 6 in favour of bill PLP 128/2025, less than 24 hours after it passed the Chamber of Deputies.

The legislation outlines a tiered increase in the tax on Gross Gaming Revenue (GGR), which is currently set at 12%. Under the new law, the rate will climb to:

• 13% in 2026
• 14% in 2027
• 15% in 2028

The additional revenue generated from this hike is earmarked for public welfare: half will be allocated to social security, and the other half will fund healthcare initiatives.

Joint Liability for Enablers of Illegal Betting

Beyond the headline tax rate, PLP 128/2025 introduces significant compliance measures. The bill establishes joint liability for third parties that facilitate illegal gambling. This means that financial institutions, payment processors, and advertising agencies can be held legally responsible for unpaid taxes if they work with unauthorised operators.

The bill now heads to the desk of President Luiz Inácio Lula da Silva for final approval. If signed, most measures will take effect at the start of 2026. However, due to a constitutional "noventena" rule—which requires a 90-day waiting period for new taxes—operators will have a brief grace period after publication before the new 13% rate kicks in.

Expert Analysis: A Compromise with a Sting

While a tax hike is never welcome news for operators, the passage of PLP 128/2025 represents a "least worst" scenario for the industry. Earlier this month, the Senate Economic Affairs Committee had advanced a competing proposal (PL 5,473/2025) that sought a much steeper climb to 18% by 2028.

The government's pivot to PLP 128/2025 was a calculated political manoeuvre. When opposition politicians forced a delay on the harsher 18% bill, threatening to push it past the legislative recess, the administration fast-tracked this 15% alternative to ensure some revenue increase was locked in before the year's end.

For operators like Flutter (Betnacional) and Entain, a capped 15% rate is manageable compared to the 18% threat. However, the postponement of the controversial "CIDE-Bets" tax, a proposed 15% levy on player deposits, until 2026 is the real story. That tax would have severely impacted channelisation by punishing players for depositing funds. Its delay gives the industry another year to lobby against a measure that many experts believe would drive Brazilian bettors straight back to the black market.