TLDR
- Brazil’s Finance Minister Dario Durigan defended new taxes on sports betting operators, offshore investments, and exclusive investment funds
- Sports betting companies paid zero tax from 2018 to 2022 despite the industry being legal
- The Lula government proposed an 18% tax on betting operators; Congress approved 12%
- Annual tax revenue from licensed betting operators now stands at around BRL 9 billion
- Brazil created 5.1 million jobs in 2026, with inflation described as under control
Brazil’s Finance Minister Dario Durigan appeared before the Finance and Taxation Committee of the Chamber of Deputies this week to defend a series of tax measures targeting sports betting operators, offshore investments, tax havens, and exclusive investment funds.
Durigan pushed back against claims that the government is simply chasing revenue. He framed the measures as a fairness issue, saying the goal is to make wealthy individuals and corporations pay tax under the same rules as workers and traditional investors.
Sports Betting Went Untaxed for Years
Sports betting was legalized in Brazil in 2018 under the Temer administration. Despite being a legal and growing industry, betting operators paid no tax at all through the entirety of the Bolsonaro government, which ran until 2022.
The Lula administration proposed a tax rate of 18% on betting operators. Congress approved a lower rate of 12%. Durigan said he does not view this as excessive revenue collection, but rather a correction of a longstanding gap in the tax code.
Licensed betting operators now generate around BRL 9 billion in annual tax revenue for the government. Durigan said the Ministry of Finance will also publish more than 25,000 documents related to the betting license authorization process as part of a transparency push.
Fiscal Discipline and Economic Figures
Durigan pointed to broader economic data to support the government’s approach. Brazil created approximately 5.1 million jobs in 2026, according to the minister. Inflation has remained under control, though he noted it still requires monitoring.
Public spending was cut by BRL 23 billion during an electoral year, which Durigan said shows the government is maintaining budget discipline without cutting public services.
He also referenced the Desenrola program, a debt restructuring initiative designed to help families and businesses regain access to credit.
Fighting Illegal Betting
The Ministry of Finance said it is prioritizing action against illegal betting websites and financial transactions linked to organized crime.
Durigan said the ministry is also looking at financing opportunities abroad. He stressed that social programs and education spending are being protected, with the aim of reducing the tax burden on lower-income citizens.
The minister summarized the government’s position plainly: reduce taxes on consumption and poorer citizens, while increasing taxes on higher earners who have historically paid less than their share.
“The guiding principle was always the following: 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,” Durigan said.
