Brazil's government is preparing a Selective Tax on online betting set to take effect in 2027, but the date for submitting the bill to the National Congress remains undecided.
According to O Globo, the tax rate has been agreed internally but is still confidential and may change before formal submission to parliament. Authorities are treating online betting like tobacco products due to addiction risks and plan to set a rate high enough for fiscal impact but not so high that it pushes platforms into the grey market — a mistake the regulator already made with cigarette and alcohol taxes.
The delay is driven by political risk. The government fears criticism ahead of elections, particularly in the context of broader tax-increase policy. The decision also depends on tax reform: authorities are debating whether to include revenue from the Selective Tax and CBS (the goods and services tax replacing PIS and Cofins) in the 2027 budget.
By law, the government must submit the CBS rate to the Federal Court of Accounts by 15 September for approval. There is no penalty for missing the deadline. If the bill is delayed until November, taxation will not begin before the second quarter of 2027 — the Selective Tax requires a 90-day transition period between publication and collection.
