Brazil is moving ahead with a broad fiscal package reshaping how betting operators and fintechs are taxed. The CAE (Comissão de Assuntos Econômicos) – a permanent committee in the Brazilian Senate in charge of analyzing/deliberating on projects related to Brazil’s economy and finance – cleared the proposal, which now goes to the Chamber of Deputies. The plan centres on lifting Brazil bets taxation and tightening compliance rules across the sector.

• Betting operators will see Brazil bets taxation rise from 12% today to 15% in 2026–27 and 18% in 2028, based on GGR. The government intends to direct the additional funds mainly toward social security and health.
• A transitional rule allows the federal government to pass part of the increased revenue to states and municipalities between 2026 and 2028. This is meant to compensate for income-tax exemptions affecting public employees’ earnings. Lawmakers say the mechanism helps smooth the shift to the new tax structure.
• The proposal also corrects the deadline for foreign profit-remittance tax refunds by restoring a five-year claim window when total corporate tax exceeds the 34% benchmark. It adds tougher AML and compliance duties for fintechs and betting operators, plus the creation of the Regulatory Compliance Index for Betting (ICRA).
• The staged rise in Brazil bets taxation – from 12% now to 15% in 2026-27 and 18% in 2028 – demands operational adjustments by betting firms. Moving from 12% to 18% represents a 50% increase in GGR tax burden in only three years. The government argues the phased approach reduces market volatility while helping deliver the expected R$5bn fiscal boost next year.
• Stronger controls aim to reduce illegal betting, which analysts estimate still accounts for over 30% of Brazil’s online wagering activity. Banks and payment institutions must file compliance reports twice a year. Officials expect stricter oversight to recapture hundreds of millions of reais that currently leak to unlicensed platforms.

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