TLDR
- Brazil’s Finance Minister Dario Durigan defended new tax measures targeting sports betting operators, offshore investments, and exclusive investment funds
- Betting companies paid zero tax from 2018 to 2022; the Lula government proposed 18%, Congress approved 12%
- Annual tax revenue from licensed betting operators is around BRL 9 billion
- Brazil created 5.1 million jobs in 2026, with inflation described as under control
- Public spending was cut by BRL 23 billion, even in an electoral year
Brazil’s Finance Minister Dario Durigan appeared before the Finance and Taxation Committee of the Chamber of Deputies to defend a series of tax changes targeting sports betting operators, offshore investments, and exclusive investment funds.
Durigan argued the measures were not about raising more money overall, but about making the tax system fairer.
“The point is not to impose additional taxes in general. This is about ensuring that the rich will pay under the same criteria as the workers and traditional investors,” he said.
Sports Betting Tax: A Long Time Coming
Sports betting was legalized in Brazil under the Temer administration in 2018. Despite operating legally, betting companies paid no taxes at all through the entire Bolsonaro administration.
The Lula government proposed an 18% tax rate on betting operators. Congress approved a lower rate of 12%.
Durigan pushed back on the idea that this was excessive. “Betting companies enjoyed tax immunity. All of Bolsonaro’s time, betting operators paid zero,” he told the committee.
Licensed betting operators now contribute around BRL 9 billion per year in tax revenue. The Ministry of Finance has committed to publishing over 25,000 documents once the betting license authorization process is complete.
Durigan also said the ministry is actively working to shut down illegal betting websites and prosecute crimes linked to unlicensed financial operations.
Economic Numbers and Fiscal Discipline
The minister used the committee appearance to share broader economic data. He said Brazil created around 5.1 million jobs in 2026.
Inflation has remained under control, though Durigan acknowledged it still needs to be watched carefully.
He credited the results to economic growth, institutional predictability, and access to international markets.
On the spending side, Durigan said public expenditure fell by BRL 23 billion during an electoral year, which he presented as evidence of budget discipline.
He also pointed to the Desenrola program, a debt restructuring initiative designed to help families and businesses regain access to credit.
Tax Equality as the Guiding Principle
Durigan described the overarching goal as reducing the tax burden on lower-income citizens while correcting what he called distortions in how wealthier Brazilians are taxed.
“Reducing taxation of consumption and poorer citizens while increasing taxes fairly for those that would correct distortions of economically powerful citizens who, in our opinion, were not paying enough,” he said.
The minister added that the government also plans to explore financing opportunities abroad and continue investing in social programs and education.
The Ministry of Finance says transparency will remain a focus as the licensed betting market develops.
