Brazil: Bets must pay 30% retroactively in taxes and fine

The decision was detailed during a press conference at the Federal Senate, where Haddad presented information about the political agreement that enabled the vote on the Provisional Measure (MP) that serves as an alternative to increasing the Financial Operations Tax (IOF).

Repatriation of funds and projected revenue

According to the minister, the Federal Revenue Service would face difficulties in retroactively collecting the amounts owed by platforms that operated in Brazil and transferred funds abroad. Therefore, the government decided to create a repatriation program within the MP report, specifically aimed at regularizing the situation of these companies.

Haddad estimates that the initiative could generate R$ 5 billion in revenue—an amount equivalent to three years of income if the original proposal to raise the tax rate from 12% to 18% on betting profits had been maintained.

“Congress itself will, in due time, review these figures and assess whether it is appropriate to maintain the current situation or, in light of the sector’s dynamics, revisit the issue,” Haddad stated.

Sector under review and gradual adjustments

The minister emphasized that the government intends to monitor the development of the regulated betting market before proposing any new fiscal or tax adjustments.

According to him, the three-year period will serve to “X-ray the sector more carefully,” better understand revenue flows, and observe operator behavior under the newly implemented regulations.

Haddad explained that the repatriation strategy seeks to balance revenue generation and predictability without hindering the expansion of Brazil’s formalized betting market.

Political agreement and removal of tax increase

The final version of the MP, presented by Representative Carlos Zarattini (PT-SP), removed the section that proposed increasing the tax rate from 12% to 18% on betting profits—an idea originally backed by the government.

The change resulted from negotiations between lawmakers and the Finance Ministry, which prioritized the immediate vote on the measure and the launch of the repatriation program still in 2025.

“There were mutual concessions so that the vote could take place this Tuesday,” Haddad said.

Context: the “betting boom” and the regulatory challenge

During the press conference, the minister once again criticized the lack of oversight during the previous administration, pointing out that the absence of control over foreign operators led to the “boom” in betting activity in the country.

Since the official regulation of sports betting and online gaming, the federal government has strengthened its actions on control, licensing, and taxation, aiming to align the Brazilian market with international standards of compliance and transparency.

Market impact

Industry experts believe that the repatriation measure could represent an advance in the formalization process of operators and provide legal predictability for companies wishing to establish themselves lawfully in Brazil.

By charging 30% retroactively in taxes and fines, the government aims to correct distortions from the pre-regulatory period, while also opening space for a more balanced dialogue about the sector’s future tax burden.

Sector analysis

The decision reinforces the government’s intention to consolidate the new regulatory framework for sports betting, focusing on capital repatriation, fiscal responsibility, and regulatory security.

For the market, this move could signal a more stable environment for investment, while also requiring rapid adaptation by operators to the new tax and compliance requirements.