Brazilian authorities have decided to implement a modest increase in tax rates for the gambling industry

The Brazilian Senate's Economic Affairs Committee (CAE) has approved a bill to gradually increase the gross gaming revenue (GGR) tax for casino operators from 12% to 18% by 2028. This is a crucial step towards stabilizing the country's nascent gaming industry. The reform is expected to benefit both the government and businesses, laying the groundwork for long-term and responsible growth.
The tax increase will serve as a reliable source of funding for large-scale social programs. It is anticipated that the reform will generate approximately 5 billion reais (around $1 billion) in additional revenue for the budget starting in 2026. These funds will be allocated to the largest social package in Brazil's history, enhancing the public legitimacy of the market and demonstrating its positive economic contribution.
For the gaming industry, the establishment of a clear and definitive tax rate brings an end to a year of uncertainty. The adoption of this reform will also create predictable conditions for long-term investments. The moderate three-year tax increase to 18% represents a balanced compromise, replacing earlier radical proposals of 24%. This decision reflects the government's willingness to engage in constructive dialogue with the business sector. Such stability allows operators to adapt their business models, focusing on sustainable development, improving product quality, and implementing responsible gaming standards.
The bill will now move to the Chamber of Deputies. Its final approval will be a cornerstone for further development of gaming industry regulations, including the establishment of a federal self-exclusion registry and advertising rules. Thus, the tax reform lays a solid foundation for transforming Brazil from an unpredictable market into one of the largest and most stable regulated markets in the world, making it attractive for international investments.
Note: Brazil is currently discussing legislation to legalize casinos, bingo, and horse racing.