Brazil sets a 0.5% selective tax on lotteries and betting for 2027, weeks after banning fixed-odds bets

Brazil has set a 0.5% rate for its new Selective Tax on lotteries and other betting products, in a provisional measure published on November 4, 2026, while the country's fixed-odds betting market remains shut down by a separate measure issued six weeks earlier.

Provisional Measure (MP) 1.399/2026, signed by President Luiz Inácio Lula da Silva and Finance Minister Dario Durigan, sets the rates for the Selective Tax (Imposto Seletivo, often called the "sin tax") for calendar year 2027. The tax, created by Brazil's 2023 tax reform, applies to goods and services the government considers harmful to health or the environment.

What the measure says about betting

Article 7 of the measure states that the Selective Tax rate applicable to concursos de prognósticos (prognostic contests) under Article 244 of Complementary Law 214/2025 "corresponds to 0.5%".

Article 244 of that law defines the category as prognostic contests "in physical or virtual form, comprising all lottery modalities, including fixed-odds betting and sweepstakes, horse-race betting and other bets". Its sole paragraph extends the same chapter to fantasy sport.

The Ministry of Finance's announcement of the measure gave the federal lotteries Mega-Sena, Lotofácil and Loteca as examples of products subject to the 0.5% rate. It did not mention fixed-odds betting.

Timing

The measure took effect on publication but produces effects from February 2, 2027. It applies until a law setting permanent rates takes effect; under Article 15, the executive must send that bill to Congress by May 31, 2027, with rates applying from January 1, 2028.

The betting ban

Fixed-odds betting has been prohibited nationwide since MP 1.394/2026 of September 25. Congress has until November 23 to vote on that measure, which is also being challenged at the Supreme Federal Court. More coverage is collected on AskSpinner's Brazil betting ban (MP 1.394) topic page.

Photo: Ricardo Stuckert / Lula Oficial / Wikimedia Commons, CC BY-SA 4.0 (September 10, 2026 signing of a different bill, PLV 13/2026, on international parcel taxation; cropped)

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