After an earlier attempt to raise gambling taxes failed last week, the Brazilian government is now taking new steps to increase the rate.
The leader of the Workers’ Party in the Chamber of Deputies, Lindbergh Farias, has introduced a new bill that would double the gross gaming revenue tax from 12% to 24%.
Immediately following the Chamber’s withdrawal of a provisional measure that had called for a smaller hike to 18%, the proposal—Bill PL 5,076/2025—was introduced on October 9th.
Brazil’s social security and public health programmes would receive half of the new tax revenue, if it were approved, with the remaining portion going to other areas like culture and sports.
Under the leadership of President Luiz Inácio Lula da Silva, the Workers’ Party is making a fresh attempt to achieve its goals for economic policy.
Betting Growth and Legislative Challenges
According to a 2023 Comscore study, Brazil now has one of the biggest gambling markets in the world, with betting activity only surpassed by the US and the UK.
The bill acknowledges the sharp rise in betting volume and draws attention to related financial and social issues that affect families and mental health, including gambling addiction and debt.
Provisional Measure 1,303, the prior attempt to increase the gambling tax by 50%, was ultimately shelved before a vote could be taken.
Retroactive taxes for pre-regulation activity were also included in that plan, but it was vetoed. The goal of PL 5,076/2025 is to support the government’s larger economic agenda while reviving the tax hike.
According to the bill, the new rate would still be lower than those in nations like France and Germany, even though it would be higher than the average for the majority of activities in Brazil.
Its goal is to reduce addiction by decreasing the appeal of gambling while also boosting healthcare spending.
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