Brazilian government studies retroactive collection of bets and expects to raise USD 2.26 billion

The regulated fixed-odds market was launched in January 2024, and in April of the same year the government began taxing the sector at 12%. The estimated retroactive collection of the betting houses is around USD 2.26 billion. In total, 135 bets would have to face the retroactive payment.

When contacted, the Ministry of Finance confirmed that it was analysing the measure: "There is a working group, formed by the RF and the SPA, which is analysing the issue. The results will subsidise Receita Federal's actions regarding eventual retroactive charges. Due to the secrecy surrounding tax intelligence matters, it is not possible to provide additional details," the ministry says.

The Annual Inspection Report, published by the RF with plans for 2025, presents the fixed odds betting measures as ‘structuring’. The document envisages ‘assessing measures to ensure compliance at sustainable levels in the fixed odds betting market, taking into account the differences between players authorised by market regulators and those operating outside the legislation’.

In March this year, revenue secretary Robinson Barreirinhas said that gambling companies operating in Brazil before the regulation should pay retroactive taxes. According to him, if it is proven that the companies operated in the country and made profits during the period, they should pay the taxes to the treasury.

At the time, he was a member of the Gambling CPI in the Federal Senate. Barreirinhas explained that companies that have been authorised by the Treasury have received a ‘vote of confidence’, which does not mean that there will not be an inspection of their past. ‘Because, in the past, if they had income here in Brazil, they had turnover, and they were in fact in Brazil, they owe taxes to Brazil,’ he said.

Online gambling was authorised at the end of the government of former president Michel Temer (MDB), and was not regulated by the government of former president Jair Bolsonaro (PL), which expanded the creation of companies in the sector.

Finance Minister Fernando Haddad has already publicly stated his opposition to bookmakers. ‘There is no tax revenue to justify this robbery that we have reached,’ he said. He claims that more than USD 7.2 billion in taxes have not been paid by Apuestas in the time the sector has been unregulated.

In March this year, revenue secretary Robinson Barreirinhas said that gambling companies operating in Brazil before the regulation should pay retroactive taxes. According to him, if it is proven that the companies were operating in Brazil before the regulation, they would have to pay retroactive taxes.

In the meantime, a Provisional Measure (MP) is before the National Congress, which foresees an increase of the tariff to 18%. With the tariff increase, the economic team expects to increase revenues by R$284.94 million in 2025 and by R$1.7 billion in 2026 and 2027.

By Augusto Tenório and Gabriela Pereira