Data published by the Brazilian Federal Tax Administration on 23 October show that between January and September 2025, the federal Government collected approximately R$6.8 billion (approximately $1.26 billion) in taxes from the lottery and betting industries. This figure includes not only taxes on the total lottery revenues of the gaming website, but also other taxes and fees paid by the operators of the industry.
In September alone, the industry contributed about R$1.2 billion (approximately $222 million) to tax revenues. In its report, the Federal Tax Administration noted, inter alia, “the good performance of financial institutions and the growth of lottery betting activities” and attributed it mainly to recent legislative reforms to expand the taxation and regulation of online gaming platforms. The report shows that, as the regulatory framework of the Government improves, the legal lottery industry in Brazil continues to move towards regulation. The release of data coincided with a sensitive period: the Federal Government was considering new schemes to increase the taxation of lottery operators following the lapse of Interim Measure 1.303. The interim measure eventually proposed an increase in the tax rate of the lottery operator, which was later replaced by a retroactive tax clause, which was withdrawn by the House of Representatives from the legislative agenda on 8 October.
In response, legislators supporting the Government moved to move forward with new legislative processes to guarantee tax harmonization and fiscal soundness. On 22 October, the Chamber of Deputies Committee on Fiscal Affairs adopted an urgent motion to expedite the advancement of Bill 5.076/205. The bill, introduced by the Labour Party leader, Lindberg Faryas, aims to raise the online lottery rate from 12 per cent to 24 per cent of total income in order to stabilize federal revenues and continuously regulate the fast-growing lottery market after temporary measures fail. The emergency motion was co-sponsored by 34 members of the ruling Labour Party and the Opposition Liberal Party, which allowed the bill to bypass some of the conventional procedural obstacles. Through this green passage, the proposal will be submitted directly to the House of Representatives Steering Committee, which can arrange for a plenary vote without the Committee ‘ s consideration. This short cut reflects the Government ‘ s determination to strengthen the financial regulation of the fast-growing network lottery industry.
At present, the value tax reform is at the heart of the Brazilian economy and political circles, and legislators are balancing the increase in public revenues against the growth of industry. If the bill was passed, the new tax rate of 24 per cent would double the industry ‘ s financial contribution, making the lottery tax one of the most important non-traditional sources of income in Brazil ‘ s federal budget in 2026.