Senate Floor Passes Bill Reducing Tax Breaks and Increasing Taxes on Betting and Fintechs
On Thursday night (17), the Senate floor approved a bill that reduces federal tax benefits across various sectors by 10% while simultaneously increasing taxation on “bets” (online betting sites) and fintechs (PLP 128/2025). The vote passed 62 to 6. The text now moves to the President’s desk for signature.
“Bets” refers to online sports betting companies, while fintechs are technology firms that offer financial services similar to those provided by traditional banks.
Senator Randolfe Rodrigues (PT-AP), the government leader in Congress, served as the rapporteur and issued a favorable opinion on the initiative. In defense of the bill, Rodrigues stated that federal tax benefits must be constantly evaluated and monitored to prevent increasing social inequality.
Betting
At the government’s request to help balance the 2026 Budget, the House included tax hike provisions. One targets fixed-odds online betting (bets), which will see rates rise from the current 12% to 13% in 2026, 14% in 2027, and reaching 15% in 2028. Half of this increase will be allocated to social security and the other half to healthcare initiatives.
To tighten oversight, the text stipulates that those who advertise unauthorized betting sites—or institutions that continue to operate with them after formal notification—may be held jointly liable for the applicable taxes.
Fintechs
The bill also addresses increases in the Social Contribution on Net Profit (CSLL) for certain financial institutions, using a graduated scale. Credit, financing, and investment companies (fintechs) and capitalization companies will see their rates rise from 15% to 17.5% through December 31, 2027, and to 20% starting in 2028.
Meanwhile, the rate will increase from 9% to 12% through 2027, and to 15% starting in 2028, for:
- Organized over-the-counter (OTC) market administrators;
- Stock and commodities exchanges;
- Clearing and settlement entities;
- Other companies classified as financial institutions.