Brazil's finance ministry has adjusted its 2027 budget assumptions after the prohibition of fixed-odds betting removed revenue that had been expected from the sector under the new selective tax. Finance Minister Dario Durigan said the change would reduce one part of the forecast but would not create broader revenue difficulties.
Durigan addressed the issue on November 5 while discussing the transition to the selective tax. iGaming Brazil reported that betting had been included in the initial planning before the September prohibition ended licensed online operations. The minister said the government had accommodated the resulting change in the budget.
The minister estimated that roughly BRL60 billion a year would no longer be directed to betting and argued that some of that spending was moving into retail and wholesale activity. Correio Braziliense also reported his statement that the government expected close to BRL10 billion in sector-related revenue this year before the new budget baseline.
The tax transition is governed by Provisional Measure 1,399/2026, which sets temporary selective-tax rates for 2027. The Finance Ministry says the levy will begin on February 2 and that adjustments to the reference rate for the new consumption tax will preserve the overall revenue level during the transition.
Brazil's separate betting prohibition remains subject to congressional review. The minister's comments concern fiscal planning rather than a new decision on whether the market will reopen. Any change to the betting measure or to the 2027 budget would require further legislative action.
