Finance Minister says end of betting will reduce Selective Tax revenue and require budget adjustment

President Luiz Inácio Lula da Silva’s decision to ban sports betting and online gaming in Brazil on September 25 will reduce the projected revenue from the Selective Tax, also known as the Sin Tax, next year. This is because betting had been included in the initial proposal, which will need to be adjusted following the suspension of the sector’s activities. The information was announced this Thursday (5) by Finance Minister Dario Durigan during a press conference. Between January 2025 and September 2026, when online betting was suspended through a provisional measure, the federal government collected R$15.3 billion in taxes from the sector. The data was presented by Brazil’s Federal Revenue Service in a recent report. Given the loss of previously projected revenue, the minister stated that the government will need to accommodate the impact in the 2027 budget planning. The budget proposal has yet to be voted on by the National Congress. “We’ll adjust the budget, and this won’t create difficulties for revenue,” the minister said. Progress of the Bets Provisional Measure in Congress Signed by Lula in September of this year, the so-called Bets Provisional Measure banned the offering, operation, and advertising of online betting throughout the country. However, the provisional measure must be reviewed and voted on by the National Congress within 120 days. Taking into account the suspension of the count during the legislative recess, the deadline for reviewing the measure would extend to March 5, 2027. If it is not reviewed by lawmakers within that deadline, the measure will expire. As a result, the activity would once again be allowed nationwide starting in March of next year. However, the government plans to set up the joint committee responsible for reviewing the text next week. According to the government’s leader in Congress, Senator Randolfe Rodrigues, the intention is to keep the proposal fully intact, without allowing room for the legalization of sports betting, as suggested by some amendments. According to Randolfe, the expectation is to meet this weekend with Senate President Davi Alcolumbre and Chamber of Deputies President Hugo Motta to decide on setting up the committee and appointing its members. O post Finance Minister says end of betting will reduce Selective Tax revenue and require budget adjustment apareceu primeiro em iGaming Brazil.