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Brazil’s joint congressional committee approved Provisional Measure (MP) 1,303 on Tuesday, 7 October, in a razor-thin 13–12 vote. The text concerns taxation of financial investments and virtual assets and, after last-minute changes by rapporteur Carlos Zarattini (PT-SP), now also addresses betting operations that pre-dated regulation.
Zarattini’s earlier idea to raise the gross gaming revenue (GGR) levy on regulated operators from 12% to 18% was removed from the report before the vote, following negotiations with lawmakers. That increase is not in the approved committee text.
How the retroactive program would work
The report creates a special, voluntary regularization regime branded “RERCT Litígio Zero Bets” for companies that operated in Brazil before the regulated market. Participants would pay 15% income tax on declared amounts plus a penalty equal to that tax (for an effective 30%) and would have 90 days to join once the law is published. Several outlets and officials describe the regime using this 15% + 100%-of-tax formula.
The window spans 2014–2024, targeting activity prior to Brazil’s regulated fixed-odds market, which officially began on 1 January 2025 under the Finance Ministry’s framework. Government assessments circulating around the vote pointed to roughly R$5 billion in potential one-off revenue if the program launched. Meanwhile, sentiment on the Senate’s consultation page skewed strongly negative 936 “yes” vs 10,351 “no” as of 04:29 on 9 October.
What happens next
After the committee stage, MPs must still clear the full Chamber of Deputies and the Senate before an MP’s expiry. In this case, MP 1,303 needed plenary approval by Wednesday, 8 October, or it would lapse. On the evening of the 8th, the Chamber removed the item from the voting agenda; without floor votes that day, the measure lost validity.
The government has signaled it may look for alternate legislative or regulatory avenues to pursue parts of the package particularly the regularization of pre-2025 betting activity even after this MP’s expiration. Any renewed effort would have to be reintroduced and steered through both chambers under tight political timelines.
Source: https://www.congressonacional.leg.br/materias/medidas-provisorias/-/mpv/169059#tramitacao_11163843
