Brazil’s iGaming Regulation enters a Defining Phase

Brazil’s regulatory landscape for iGaming is evolving at an accelerated pace. For operators, suppliers and investors active in the market, staying informed is no longer optional – it is a strategic necessity. While the speed of change is intense, the direction is increasingly clear: greater centralization, higher compliance standards and tougher action against illegal operators.

In recent weeks, Brazil has entered its most transformative phase of iGaming regulation to date. On one front, the Supreme Federal Court (STF) has reaffirmed federal authority over betting activities. On another, the Senate has advanced significant tax and compliance reforms under PL 5473/2025. In parallel, a bill moving through the Constitution and Justice Committee (CCJ) proposes a new levy on deposits and stricter criminal measures aimed at combating organized crime linked to illegal betting.

For licensed operators, suppliers and investors, these developments redefine the rules of engagement and underscore the government’s commitment to building a centralized, secure and closely supervised betting market.

PL 5473/2025: CAE approves a gradual increase in GGR Taxation

Alongside judicial developments, the Senate’s Economic Affairs Committee (CAE) approved a revised taxation model for fixed-odds betting under PL 5473/2025. The proposal replaces an immediate increase to 24% with a phased contribution on Gross Gaming Revenue (GGR):

• 15% in 2026–2027;

• 18% from 2028 onwards.

GGR – calculated as wagers minus payouts and applicable prize income tax – aligns Brazil’s framework with international regulatory practice.

Revenues from this contribution are intended to support social security and offset subnational revenue losses arising from broader income tax reform. Industry analysis suggests that the gradual approach improves predictability and planning stability, provided that illegal competition is effectively contained.

Enforcement, Compliance and the Regulatory Compliance Index (ICRA)

The same legislative package introduces a series of measures aimed at strengthening oversight, curbing irregular operations and reinforcing financial controls across the betting ecosystem. Key provisions include:

• Creation of the Regulatory Compliance Index for Betting (ICRA);

• Enhanced integrity and suitability checks for operator authorization;

• Mechanisms to block suspicious financial transactions;

• Specific rules governing PIX to prevent misuse by unlicensed platforms;

• Expanded obligations for payment institutions and financial entities;

• Public reporting requirements on betting activity.

Some operational details – including reporting timelines, penalties and thresholds – remain subject to legislative refinement and should be treated as under discussion rather than final obligations.

Nevertheless, the regulatory direction is clear: Brazil is moving toward a significantly more robust compliance environment, with financial monitoring positioned as a central pillar in the fight against illegal betting and money laundering.

CCJ advances CIDE-Bets and Public Security measures

Separately, the Constitution and Justice Committee (CCJ) has advanced PL 5.582/2025, a bill focused on combating organized crime that introduces a new levy directly linked to the betting sector: CIDE-Bets.

The proposal establishes a temporary 15% contribution on deposits made by individuals into betting platforms. The proceeds would be allocated to the National Public Security Fund until the new Selective Tax framework is fully implemented.

Estimates indicate potential annual revenues of up to R$30 billion, with at least 60% allocated to state public security funds to strengthen crime prevention initiatives and prison infrastructure.

Industry groups such as ANJL and IBJR have expressed concerns that CIDE-Bets could distort competition by favouring illegal operators, who would not collect the levy and could offer more attractive deposit conditions. To mitigate this risk, the bill introduces a temporary regularisation window, which could generate up to R$7 billion in additional revenue if currently unlicensed operators choose to comply.

The broader legislative package also includes:

• Stricter penalties for criminal organizations, in some cases reaching 60 to 120 years of imprisonment;

• Mandatory incarceration of criminal leaders in federal maximum-security facilities;

• Joint liability for payment providers enabling illegal betting transactions;

• An obligation for the government to consolidate security-related funds within 180 days.

The bill now returns to the Chamber of Deputies under the rapporteurship of Deputy Guilherme Derrite.

What this means for Brazil’s Betting Market

Taken together, these developments mark a decisive turning point for Brazil’s iGaming sector, characterized by:

• Centralized federal supervision;

• Predictable increases in GGR taxation;

• Expanded compliance and financial monitoring;

• Aggressive efforts to suppress illegal operators;

• Short-term uncertainty linked to CIDE-Bets.

Key takeaways for operators:

• Municipal pathways are no longer viable;

• Federal licensing is the only legitimate route to market;

• Taxation will rise gradually over the next three years;

• Advertising, payments and compliance will face heightened scrutiny;

• Illegal operators will be targeted through financial, technological and criminal enforcement;

• CIDE-Bets introduces transitional uncertainty and competitive risk.

These reforms aim to establish a stable, structured and credible regulatory framework, supporting Brazil’s ambition to become one of the world’s largest regulated betting markets.

Stay informed on Brazil’s iGaming regulation with Oddsgate as your trusted regulatory reference point.