Ana Maria Mendes & Elisa Marcante: SBC Noticias BR
Beginning its hearing, the parliamentary inquiry into the Bets regulatory regime is told that, somehow or some way, Brazil Bets tax liabilities will be accounted for…
As the first quarter of the Brazil Bets market winds down, its nascent regulatory framework has guaranteed just one certainty: that tax liabilities remain unaccounted for.
The week of 11 March marked the first meeting of the Parliamentary Inquiry Commission of the Bets regime (CPI Bets), focused on settling the outstanding fiscal policies of the Bets market.
The inquiry, which will play an integral role in how tax liabilities are determined, called on Robinson Sakiyama Barreirinhas, the Special Secretary of Receita Federal (part of the Federal Revenue Service – the FRS), to provide an update on the coordination of tax duties for Bets.
Context is required, as the Bets regime was sanctioned on 1 January 2025 under the framework of Law No. 14,790/2023, which imposed a 12% tax on gross gaming revenues (GGR) for licensed operators and a 15% tax on player prizes exceeding BRL 2,824 (approximately €530), as ordered by President Lula da Silva.
Secretary Barreirinhas was cautious when providing an update on tax collection since the launch of the Bets regime, stating that authorities would get a “clear picture in six months” as Receita Federal has assigned a specific team to “analyse the data submitted by companies on tax collection”.
Regarding unaccounted taxes due to the previous lack of regulatory oversight of online gambling, Secretary Barreirinhas maintains that lost duties could amount to BRL 3bn (€3.3m). However, the final figure will be confirmed by Receita Federal.
“Since 2025, Receita Federal now has what it didn’t have until now — basic information about the operations of these companies in Brazil,” Barreirinhas stated.
Robinson Barreirinhas: Receita Federal
Receita Federal needs definitive terms on tax collection
On the contentious issue of applying retroactive taxes on operators active in the market from 2018 to 2024, Barreirinhas was clear in his testimony: “In my opinion, those who were physically present in the country, materially or informally, are accountable to the Brazilian tax authorities.”
Although retroactive taxes would be hard to apply to foreign operators active prior to the Bets regime, Barreirinhas noted that legislative changes could hold accountable the agents and services that facilitated transactions with illegal operators.
To support Receita Federal, Barreirinhas believes that Congress should establish a new law focused on the taxation of gambling, kept as a separate statute from the Bets regime.
A specific law would further define the best method for Brazilian consumers to pay the 15% income tax on player prizes exceeding BRL 2,824 (approximately €530).
Receita Federal has put forward that the income tax (IR) payments should be withheld at the source by licensed operators managing customer accounts — a process similar to the taxation of lottery prizes.
However, Congress rejected this recommendation, citing that consumers should individually document online gambling winnings as part of their Personal Income Tax (IRPF) filings each year.
“Receita Federal expressed its position, but Congress did not foresee withholding player tax at the source,” Barreirinhas noted. “Withholding income tax should not be about revenue collection, but rather to discourage gambling by making bettors reconsider their betting habits.”
Tax will be Bets definitive judgement
Bets’ tax affairs and liabilities have been monitored closely by Ana Helena Pamplona, lawyer and partner at Ana Helena Karnas Hoefel Pamplona Advocacia.
Speaking to SBC Noticias Brazil, Pamplona acknowledged that expert opinion remains divided on how the Bets regime should settle its outstanding tax affairs.
Ana Pamplona:
Pamplona emphasised that the “success of the regulated market is closely tied to the effectiveness of its tax regime”. A fair approach is needed as high tax burdens could drive players towards illegal operators, undermining the purpose of regulation.
“High tax rates imposed on both operators and players need to be carefully balanced to avoid negative consequences. Excessive taxation could push players toward the unregulated market, which would defeat the purpose of establishing a structured legal framework,” Pamplona stated.
Pamplona expressed that the legal frameworks remain incomplete and requires specific determinations concerning the 12% tax on Gross Gaming Revenue (GGR). Like many, she argues that the legal nature of this tax remains unclear — whether it should be treated as a public fee or a standard tax:
“The first step should be to define the legal status of this contribution. If it is considered a public fee, the regulatory approach would be different from that of a conventional tax. Clarity on this point would help operators comply with their obligations and avoid legal disputes.”
She also raised concerns about the simultaneous existence of two tax regimes (CBS and IBS) until 2033, creating uncertainty for operators and players alike: “This overlapping period creates a complex environment where operators are unsure which rules apply. This uncertainty needs to be resolved to build trust and stability in the market.”
Finding sense & balance
Pamplona believes that the next two years (2025 and 2026) will be decisive in shaping the future of the Brazilian betting market. The government and authorities must provide a clear definition of legal terms that will be necessary to avoid conflicts and ensure compliance.
On the matter of taxing players’ winnings, Pamplona backs the ‘Receita Federal approach’ that withholding income tax at the source would simplify the process and increase compliance.
However, she noted that political opposition to such a measure could delay its implementation, while the opposition has not provided an alternative application.
“Withholding tax at the source is standard practice in other markets, especially for lottery prizes. Applying the same rule to betting winnings would simplify the process and reduce the risk of tax evasion. However, political considerations might prevent this from happening anytime soon,” she concluded.
The position reflects the broader sentiment within the industry — that Brazil’s regulated betting market holds significant potential but requires a stable and predictable tax framework to thrive.
Pamplona concluded: “The real challenge is finding a balance between securing government revenue, supporting industry growth, and managing player behaviour responsibly. Overregulation or excessive taxation could drive players to unregulated markets, while underregulation risks undermining public trust and government income.”
Brazil Bets undermined by no specific law on tax duties
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Ana Maria Mendes & Elisa Marcante: SBC Noticias BR
Beginning its hearing, the parliamentary inquiry into the Bets regulatory regime is told that, somehow or some way, Brazil Bets tax liabilities will be accounted for…
As the first quarter of the Brazil Bets market winds down, its nascent regulatory framework has guaranteed just one certainty: that tax liabilities remain unaccounted for.
The week of 11 March marked the first meeting of the Parliamentary Inquiry Commission of the Bets regime (CPI Bets), focused on settling the outstanding fiscal policies of the Bets market.
The inquiry, which will play an integral role in how tax liabilities are determined, called on Robinson Sakiyama Barreirinhas, the Special Secretary of Receita Federal (part of the Federal Revenue Service – the FRS), to provide an update on the coordination of tax duties for Bets.
Context is required, as the Bets regime was sanctioned on 1 January 2025 under the framework of Law No. 14,790/2023, which imposed a 12% tax on gross gaming revenues (GGR) for licensed operators and a 15% tax on player prizes exceeding BRL 2,824 (approximately €530), as ordered by President Lula da Silva.
Secretary Barreirinhas was cautious when providing an update on tax collection since the launch of the Bets regime, stating that authorities would get a “clear picture in six months” as Receita Federal has assigned a specific team to “analyse the data submitted by companies on tax collection”.
Regarding unaccounted taxes due to the previous lack of regulatory oversight of online gambling, Secretary Barreirinhas maintains that lost duties could amount to BRL 3bn (€3.3m). However, the final figure will be confirmed by Receita Federal.
“Since 2025, Receita Federal now has what it didn’t have until now — basic information about the operations of these companies in Brazil,” Barreirinhas stated.
Robinson Barreirinhas: Receita Federal
Receita Federal needs definitive terms on tax collection
On the contentious issue of applying retroactive taxes on operators active in the market from 2018 to 2024, Barreirinhas was clear in his testimony: “In my opinion, those who were physically present in the country, materially or informally, are accountable to the Brazilian tax authorities.”
Although retroactive taxes would be hard to apply to foreign operators active prior to the Bets regime, Barreirinhas noted that legislative changes could hold accountable the agents and services that facilitated transactions with illegal operators.
To support Receita Federal, Barreirinhas believes that Congress should establish a new law focused on the taxation of gambling, kept as a separate statute from the Bets regime.
A specific law would further define the best method for Brazilian consumers to pay the 15% income tax on player prizes exceeding BRL 2,824 (approximately €530).
Receita Federal has put forward that the income tax (IR) payments should be withheld at the source by licensed operators managing customer accounts — a process similar to the taxation of lottery prizes.
However, Congress rejected this recommendation, citing that consumers should individually document online gambling winnings as part of their Personal Income Tax (IRPF) filings each year.
“Receita Federal expressed its position, but Congress did not foresee withholding player tax at the source,” Barreirinhas noted. “Withholding income tax should not be about revenue collection, but rather to discourage gambling by making bettors reconsider their betting habits.”
Tax will be Bets definitive judgement
Bets’ tax affairs and liabilities have been monitored closely by Ana Helena Pamplona, lawyer and partner at Ana Helena Karnas Hoefel Pamplona Advocacia.
Speaking to SBC Noticias Brazil, Pamplona acknowledged that expert opinion remains divided on how the Bets regime should settle its outstanding tax affairs.
Ana Pamplona:
Pamplona emphasised that the “success of the regulated market is closely tied to the effectiveness of its tax regime”. A fair approach is needed as high tax burdens could drive players towards illegal operators, undermining the purpose of regulation.
“High tax rates imposed on both operators and players need to be carefully balanced to avoid negative consequences. Excessive taxation could push players toward the unregulated market, which would defeat the purpose of establishing a structured legal framework,” Pamplona stated.
Pamplona expressed that the legal frameworks remain incomplete and requires specific determinations concerning the 12% tax on Gross Gaming Revenue (GGR). Like many, she argues that the legal nature of this tax remains unclear — whether it should be treated as a public fee or a standard tax:
“The first step should be to define the legal status of this contribution. If it is considered a public fee, the regulatory approach would be different from that of a conventional tax. Clarity on this point would help operators comply with their obligations and avoid legal disputes.”
She also raised concerns about the simultaneous existence of two tax regimes (CBS and IBS) until 2033, creating uncertainty for operators and players alike: “This overlapping period creates a complex environment where operators are unsure which rules apply. This uncertainty needs to be resolved to build trust and stability in the market.”
Finding sense & balance
Pamplona believes that the next two years (2025 and 2026) will be decisive in shaping the future of the Brazilian betting market. The government and authorities must provide a clear definition of legal terms that will be necessary to avoid conflicts and ensure compliance.
On the matter of taxing players’ winnings, Pamplona backs the ‘Receita Federal approach’ that withholding income tax at the source would simplify the process and increase compliance.
However, she noted that political opposition to such a measure could delay its implementation, while the opposition has not provided an alternative application.
“Withholding tax at the source is standard practice in other markets, especially for lottery prizes. Applying the same rule to betting winnings would simplify the process and reduce the risk of tax evasion. However, political considerations might prevent this from happening anytime soon,” she concluded.
The position reflects the broader sentiment within the industry — that Brazil’s regulated betting market holds significant potential but requires a stable and predictable tax framework to thrive.
Pamplona concluded: “The real challenge is finding a balance between securing government revenue, supporting industry growth, and managing player behaviour responsibly. Overregulation or excessive taxation could drive players to unregulated markets, while underregulation risks undermining public trust and government income.”