Brazil is on the brink of a significant transformation in its gambling and financial sectors, as the government throws its weight behind a sweeping tax reform targeting betting companies, fintechs, and banks. This legislative push comes at a time when international operators, such as DigiPlus Interactive Corp.—the parent company of BingoPlus—are making aggressive moves to establish a foothold in Brazil’s burgeoning online gambling market.
On November 9, 2025, the Brazilian government publicly endorsed a bill proposed by Senator Renan Calheiros (MDB–AL) that aims to raise taxes across several key industries. According to BNL Data, the bill is set for discussion in mid-November before the Senate’s Committee on Economic Affairs (CAE) and aligns with President Lula da Silva’s broader fiscal strategy: balancing tax exemptions with measures to boost government revenue.
The proposed legislation is the product of intense political negotiation. Initially, Senator Renan considered making substantial changes to the bill, but such amendments would have delayed the implementation of a parallel reform expanding tax relief for individuals earning up to R$5,000 per month. To avoid these setbacks, Senator Eduardo Braga, who is responsible for reporting on Renan’s proposal, met with Finance Minister Fernando Haddad and Senate President Davi Alcolumbre, seeking to finalize the measure. Braga has also been in discussions with opposition leaders, particularly from the Liberal Party (PL), to ensure the bill’s smooth passage.
Minister Gleisi Hoffmann, head of the Secretariat for Institutional Relations, explained that the government opted to support Renan’s initiative rather than introduce its own competing proposal, especially after withdrawing a provisional measure that would have replaced the IOF tax. She commented, “the government’s priority is supporting Senator Renan’s project.” Hoffmann also noted that, if necessary, the administration could later merge its ideas with the Senate bill under an urgent procedure in the Chamber of Deputies.
The bill proposes a series of significant tax hikes. For sports betting operators—referred to as “bets” in the legislative text—the tax rate on gross revenue will double from 12% to 24%. Financial institutions, including banks, credit companies, and investment firms, will see their CSLL (Social Contribution on Net Profit) tax rate increase from 15% to 20%. Meanwhile, fintechs, securities brokers, and payment institutions will face a jump from 9% to 15%.
Not everyone is equally enthusiastic about the changes. Senator Carlos Portinho, leader of the PL in the Senate, expressed support for increasing the tax burden on betting companies but voiced reservations about treating fintechs the same way. “I think 24% of betting houses is still low, but fintechs are something else – an innovation, not criminality,” he said, according to BNL Data. This distinction highlights the ongoing debate over how to foster innovation while ensuring fair taxation.
Another notable amendment, proposed by Senator Izalci Lucas (PL–DF), seeks to extend the deadline for tax-exempt dividend distributions. Under the current bill, companies could distribute dividends without the 10% withholding tax if approved by December 31, 2025. The new proposal would push this deadline to April 30, 2026, acknowledging that many companies only finalize financial statements and declare dividends after the fiscal year’s close. There are also ongoing discussions about limiting the 10% tax on dividends sent abroad to non-resident taxpayers, though this point remains under negotiation.
These tax reforms are more than just a matter of fiscal policy. They represent a strategic effort by the Lula administration to generate new revenue without the political risks of advancing a government-sponsored tax reform. The measure also reflects a rare moment of unity between government leaders and the opposition, who are working together to address the complexities of Brazil’s fiscal regime and the rapidly evolving digital economy.
While lawmakers in Brasília debate the future of Brazil’s tax landscape, international gambling operators are eyeing the country as a prime destination for expansion. On November 7, 2025, DigiPlus Interactive Corp., the operator behind BingoPlus, announced that its subsidiary DigiPlus Brazil Interactive Ltda. had completed all postqualification regulatory requirements for a federal gambling license in Brazil. The company, according to the Philippine Daily Inquirer, paid the required license fees within the deadline and expects to be on the final list of authorized operators from January 1, 2025, onwards.
DigiPlus filed its application for the federal license in August 2025 and successfully passed the qualification stage in October. The license will allow the company to operate land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in Brazil. Fixed-odds betting, for the uninitiated, is a form of gambling where players wager on the probability of specific outcomes—think the odds of a horse winning a race.
Brazil is an especially attractive market for DigiPlus and its competitors. With a population of 200 million—87% of whom have internet access—the country offers a vast and largely untapped audience for online gambling or “iGaming.” DigiPlus has allocated an initial funding of 660 million Philippine pesos for its Brazilian venture, signaling just how high the stakes are.
The company’s recent financial performance underscores the potential of this expansion. DigiPlus saw its net income for the first nine months of 2025 grow more than fourfold to 8.75 billion Philippine pesos, driven by strong retail games and new product launches. One such product, Pinoy Drop Ball, is a digital take on a Filipino carnival game, offering players the chance to win up to 200 million pesos if the ball lands on their chosen card.
As Brazil prepares to welcome a new wave of gambling operators, the timing of the government’s tax reforms could have significant implications. For companies like DigiPlus, higher taxes on betting revenues may affect profit margins, but the sheer size and digital readiness of the Brazilian market remain powerful incentives. The government, for its part, is betting that these tax increases will help shore up public finances while keeping the door open for innovation and competition.
The debate over how to tax fintechs, banks, and betting companies is far from settled. Lawmakers continue to negotiate the finer points, seeking a balance that supports economic growth without sacrificing fiscal responsibility. As the Renan–Calheiros bill moves through the Senate, all eyes will be on how Brazil navigates this complex intersection of politics, economics, and technological change.
With international operators poised to begin operations and lawmakers fine-tuning the rules of the game, Brazil’s financial and gambling landscapes are set for a year of transformation and high-stakes decision-making.
