Haddad defends taxation of bets in Senate hearing

The Minister of Finance, Fernando Haddaddefended this Tuesday (14) the taxation of sports betting companies, the so-called “bets”, fintechs and financial investments. According to him, Provisional Measure 1,303/2025, which provided for an increase in taxes on these segments, was “very fair”, and the taxation “is only unfair for the uninformed”. The statements were made during a hearing at the Senate’s Economic Affairs Committee (CAE), which discussed the Income Tax exemption.

“The so-called taxation of BBBs (banks, bets and billionaires), it is only unfair in the minds of people who are uninformed about what is happening in Brazil. We are not demonizing any economic activity, but they have to make a contribution proportional to the effects they generate”, said Fernando Haddad, Minister of Finance, at CAE today.

The minister highlighted that sectors with “negative externalities”, such as online betting, must bear a greater tax burden, as is the case with alcohol and tobacco in other countries.

“Nobody thinks it’s unfair to overcharge cigarettes or drinks. It’s like that all over the world. Sectors that generate dependence, such as betting, need to be treated differently”, he stated. “It’s not just any entertainment; it’s a type of entertainment that creates addiction, and it has to be treated that way.”

Firmer clash with the sector

During the hearing, Haddad signaled that the federal government could ban sports betting companies from operating in Brazil if what he called an “arm struggle” between the sector and the Executive continues.

“In the case of Bets, we have the technology today to, if this struggle continues, go into a stronger clash with the sector,” said Haddad. “They had a disastrous participation in the debates there in the Chamber, because they are dependent on social networks. So, we are able to act.”

Haddad accused the betting sector of acting heavily behind the scenes Haddad also accused the betting sector of acting behind the scenes to block MP 1,303/2025, which could generate around R$20 billion in revenue for public coffers in 2026. He compared the impact of betting to that of the cigarette and alcohol industries, arguing that these companies should contribute more to society.

MP for Taxation

The rapporteur of MP 1,303/2025, deputy Carlos Zarattini (PT-SP), had included in the final text the creation of the “Zero Bets Litigation” program, which provided for the regularization and taxation of retroactive gains. The proposal, however, faced resistance even within the government’s allied base, especially due to the increased tax burden on the sector.

The measure also strengthened supervision over the illegal market, mandating that internet providers take down illegal websites within 48 hours of notification. The MP ended up expiring on October 8, after being removed from the agenda in the Chamber of Deputies.

Haddad stated that the government will look for alternatives to recover the revenue lost with the end of the measure and correct “what happened in Congress” after the defeat of the proposal.