On November 9, 2025, Brazil’s Workers’ Party (PT) introduced a bill in the Chamber of Deputies to increase the online sports betting tax rate to 24%, up from the current 12%. This legislative move follows closely after President Lula’s government faced a setback with the expiration of Provisional Measure (MP) 1.303/2025, which had sought to increase taxes across betting, banking, and agriculture sectors.
The newly proposed bill, PL 5.076/2025, spearheaded by PT leader Lindbergh Farias and backed by over 60 party deputies, intends to funnel half of the increased tax revenue into Brazil’s healthcare system. Critics view this as a retaliatory measure after the government’s prior unsuccessful attempt to raise betting taxes and have mocked PT’s past campaign slogan “Taxação BBB”, targeting Billionaires, Banks, and Bets.
This bill seeks to amend Law 13.756/2018, which pertains to the allocation of lottery and fixed-odds betting revenue under the National Public Security Fund. It emerges as a legislative response to the lapsed MP 1.303, which failed due to insufficient consensus between government and centrist factions.
Under the proposed legislation, 76% of betting revenue would be allocated to operators for operational and maintenance purposes, while 12% would be directed to social security, with a focus on healthcare, and the remaining 12% distributed among public security, sports, culture, and social welfare.
Proponent Lindbergh Farias argues that the increased levy is justified by the adverse social and economic effects of gambling. He contends, “Online betting is a public health issue. Naturally, this sector should contribute more to fund the SUS and other social initiatives.” He further notes that despite the proposed hike, Brazil’s tax rate would still be lower than those in France (55%) and Germany (48%), raising the effective tax rate on gambling companies from approximately 27% to 35%.
The bill underscores the urgent public health implications of the burgeoning online gambling sector in Brazil. Data from Comscore ranks Brazil as third in global betting volume, trailing only the United States and the United Kingdom, with Brazilians spending an estimated 2 billion minutes on betting sites each month. Statistics from the Brazilian Society of Retail and Consumption reveal that a significant portion of gamblers—63%—reinvest their winnings into gambling, with some even cutting back on essential expenses like food (19%) and healthcare (11%).
The report also highlights a staggering increase in gambling addiction treatments at public health centers, which surged by 300% between 2022 and 2024. This phenomenon, the bill warns, demonstrates how recreational gambling can swiftly escalate into addiction, impacting not only individuals but society at large.
If enacted, the bill would take effect four months post-publication, giving betting operators a grace period to adjust. PT advocates argue that this fiscal strategy not only addresses a pressing social issue but also opens avenues for investment in health and public safety.
However, economists caution that the failure of MP 1.303/2025 has already contributed to a substantial fiscal shortfall, with government projections indicating a deficit of BRL 42.3 billion for 2025 and 2026. Opposition lawmakers claim that political resistance to the bill forms part of a broader strategy to curb President Lula’s fiscal maneuverability ahead of his potential re-election bid.
Despite political friction, PT maintains that Brazilians have demonstrated the capacity to balance social responsibility with fiscal prudence. By increasing taxes on online gambling, the government aims to not only secure fresh revenue streams but also mitigate the growing socio-economic challenges posed by gambling addiction.
This legislative initiative represents a critical juncture in Brazil’s fiscal policy, reflecting broader global trends where governments seek to reconcile the burgeoning online gaming industry with societal welfare imperatives. As debates unfold, the proposed tax hike underscores the complex interplay between economic strategy and public health priorities in contemporary governance.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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