Brazil Senate Stalls Casino Bill as Betting Tax Plan Advances

News

Brazil-edges-towards-gradual-gambling-tax-rise-after-Senate-approves-measure-land-based-casinos-wait-to-continue-after-urgent-vote-rejectedBrazil’s Senate closed its final deliberative session of the year by taking two decisions that point in different directions for the country’s gambling landscape. Lawmakers refused to fast-track a long-debated proposal that would allow land-based casinos and other forms of gambling, while at the same time approving legislation that increases the tax burden on licensed betting operators over the coming years.

In a vote held late on Wednesday, senators rejected a request to treat the casino bill as urgent. The motion failed by 36 votes to 28, which means the proposal will now proceed under the standard legislative timetable. No new date has been set for a plenary vote, extending a process that has already lasted decades.

Casino legalization remains on the ordinary track

The bill at the center of the debate, PL 2.234/2022, seeks to authorize the operation of physical casinos and bingo halls, legalize the jogo do bicho lottery, and permit betting on horse racing. Senators have been examining the proposal since 2022, after it cleared the Chamber of Deputies. Earlier this year, the Constitution and Justice Committee approved the text, but it has since remained on hold.

Senate president Davi Alcolumbre announced the urgency vote at the start of the final session of the year. The rapporteur, Senator Irajá (PSD-TO), had previously issued a favorable opinion and incorporated amendments and adjustments suggested during committee discussions.

Opposition voices were prominent during the debate. Critics, including members of the evangelical caucus, warned that expanded gambling could encourage addiction and facilitate criminal activity. Senator Eduardo Girão (Novo-CE) reiterated those concerns on the Senate floor, stating: “The matter is controversial.” He went further by arguing: “The project will attack not only people who currently gamble abroad, but also the poorest because bingo is involved.”

Supporters of the bill framed the issue in economic terms. Senator Weverton (PDT-MA) argued that regulated, physical casinos could support tourism and generate tax revenue for states. He questioned resistance to the proposal, saying: “A physical casino, with rules, will leave taxes in my state, and I’m going to say I’m against it?”

The stalled vote prolongs a legislative effort that dates back to 1991, when the original proposal was introduced in the Chamber of Deputies. Over the years, multiple amendments reshaped the text into its current form. Despite repeated expectations that a final decision could be reached, the refusal to grant urgency ensures that legalization of land-based casinos will not move quickly.

Senate approves phased increase in betting taxes

While casino legalization slowed, senators advanced a separate measure affecting the already regulated betting sector. In a decisive vote of 62 to 6, the Senate approved PLP 128/2025, a bill that reduces certain federal tax benefits and raises the tax rate applied to betting operators’ gross gaming revenue.

Under the approved schedule, the rate will increase from 12% to 13% in 2026, rise to 14% in 2027, and reach 15% in 2028. The Senate acted within 24 hours of the Chamber of Deputies’ approval, clearing the bill for presidential consideration.

The legislation also specifies how the additional revenue will be used. Half of the increase is earmarked for social security, with the remaining portion directed toward healthcare initiatives. In addition, the bill introduces joint liability for entities that advertise illegal betting platforms or provide financial and payment services to unauthorized operators.

Once sent to President Luiz Inácio Lula da Silva, the measure will await final approval. If enacted, most provisions are scheduled to take effect at the start of 2026. However, constitutional rules require a 90-day waiting period before new or higher taxes apply, giving operators a short transition window before the first increase comes into force.

Parallel paths shape Brazil’s gambling outlook

The tax bill approved by the Senate sets a lower ceiling than earlier proposals discussed this month. A separate measure considered by the Senate Economic Affairs Committee had outlined an eventual 18% rate by 2028, but that initiative did not advance before the legislative recess. Another planned vote on a 15% tax on player deposits was also postponed until 2026.

Together, the decisions underscore the uneven pace of Brazil’s gambling reforms. While online betting has already entered a regulated environment, lawmakers remain divided on extending legalization to land-based venues. The rejection of urgency leaves the casino bill without a clear timeline, even as fiscal measures targeting licensed operators continue to move forward.

For now, Brazil’s gambling sector faces a future defined by higher taxes on existing betting activities and continued uncertainty over when, or if, casinos and bingo halls will receive authorization to operate under federal law.

Source:

Rejeitada urgência para votação de projeto que libera cassinos no Brasil, 12.senado.leg.br, December 17, 2025

Comments are closed.