Brazil Decides on18% Gambling Operator Taxes in 2028

A new vote in Brazil has pushed forward a major change to how licensed gambling operators will be taxed, with a gradual rise set to reach 18% of GGR under a bill approved by the Senate Economic Affairs Committee, known as CAE.

Good to Know

• Tax rate climbs from 12% to 15% in 2026 and 2027, then to 18% in 2028
• Senate committee passed the plan by a strong 23 to 1 vote
• Extra tax revenue is earmarked mainly for social security and health programs

Senate Committee Clears New Tax Structure For Betting Operators

The committee approved PL 5,473.2025 on Tuesday, outlining a clear schedule for raising the tax burden on licensed gambling operators. The current 12% rate moves to 15% starting in 2026, holds steady again in 2027, and then increases to 18% in 2028.

Lawmakers said the gradual rise gives legal operators time to adjust while still ensuring the federal government receives more funding to support key public programs. Social security stands as the primary destination for the additional revenue, with health services receiving special priority.

Between 2026 and 2028, the government may also redirect part of these funds to state and local administrations if needed.

Lawmakers Reject Earlier Push For A Higher 24% Tax

An early draft of the bill suggested taxing operators at 24%, a number that triggered concern among legislators who fear the unintended growth of unlicensed betting activity. Senator Eduardo Braga said a sharp increase could undermine the licensed sector:

“Our concern is that the intended increase, which abruptly doubles the current percentage, will harm already legalised companies, while irregular ones will continue to operate with impunity and without paying a single cent to the public coffers.”.

His argument helped drive support for a scaled approach instead of an immediate jump.

With CAE approval secured, the bill now moves to the Chamber of Deputies for its final review. If the measure is adopted and published into law, the new tax structure will take effect on the first day of the fourth month following publication.

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