Brazil Again Delays Vote on Gambling Tax Increase Amid Weak Chamber Support

Brazil’s latest attempt to sharply raise gambling taxes has stalled once more, as lawmakers postponed the vote on a proposal to double the current rate — and have yet to set a new date for its return.

The delay follows the collapse of an earlier provisional measure that sought to lift the gambling tax rate from 12% to 18%. In October, legislators introduced a new plan to raise the levy on gross gaming revenue to 24%, but despite multiple attempts, it has not advanced.

An initial vote was pushed back earlier this month, and Tuesday’s scheduled session of the Economic Affairs Committee (CAE) was also cancelled. According to reports, Chamber of Deputies President Hugo Motta concluded the proposal lacked sufficient backing to pass.

Motta communicated this to Senate leader Davi Alcolumbre, signaling that he intended to block the bill from reaching the floor. As a result, CAE president Renan Calheiros officially cancelled the meeting.

Negotiations on the bill’s provisions are expected to continue, with lawmakers suggesting that a vote could be attempted next week. The proposal also includes an increase in the social contribution on net profit for fintech firms and other financial institutions. Progress may be slow, however, as CAE members have already submitted 172 amendments to PL 5,473/2025.

Should the bill secure approval, it would proceed directly to the Chamber of Deputies unless lawmakers request that it instead be reviewed by the full Senate.

The Lula administration appears committed to raising gambling taxes as part of its broader strategy to meet fiscal goals ahead of next year’s general election. The government faced a significant setback when its provisional measure to lift the tax rate by 50% was defeated.

Brazilian iGaming analyst Elvis Lourenço says that loss prompted a rapid push for new tax hikes. “That’s the main reason that they struck back so fast, because it was embarrassing for them,” said Lourenço, managing partner of EX7 Partners, speaking in October.

He added that the government sees political value in promoting the proposal: “This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”

Lourenço warned that doubling the tax rate would be an “insane” decision that could jeopardize the regulated gambling market, which only officially launched on 1 January of this year.

By fLEXI tEAM