President Luiz Inácio Lula da Silva has signed into law legislation that will increase taxation on betting companies operating in Brazil, with the rate set to rise from 12% to 15% by 2028.
The tax applies to gross gaming revenue, defined as gross revenue less prizes paid to bettors, and comes after Brazil established itself as the fifth largest sports betting market globally in its first year since legalization.
The Ministry of Finance said the measure seeks to balance taxation with sector growth, with the government anticipating increased revenue and greater predictability in collection.
It follows the Senate approving the tax hike earlier in the month at the 15% rate, which is below the 18% level which had previously been floated.
