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Brazil’s joint committee had approved MP 1,303 on Tuesday, October 7, by 13 votes to 12, after rapporteur Carlos Zarattini rewrote the text and removed a proposed increase of the betting GGR levy. That razor-thin win sent the measure to the Chamber with less than a day on the clock.

But on Wednesday, October 8, the Chamber approved an opposition motion to withdraw the item from the voting agenda by 251–193. Because the MP was not voted before the expiry, it lost validity, halting the package before the Senate could take it up.

What Fell with MP 1,303

The latest draft had swapped a GGR tax hike for a retroactive, voluntary regularization of pre-regulation betting activity branded “Litígio Zero Bets.” Companies would have had 90 days to enter, paying 15% income tax plus a 100% penalty on declared amounts linked to betting operations from 2014–2024.

Industry and lawmakers were sharply divided over the last-minute rewrite and its compressed timeline. With the item pulled and the MP expired, neither the retroactive program nor any betting-tax adjustments in that vehicle will take effect.

Fiscal Fallout and Next Steps

The government had pencilled about R$21bn in extra revenue for 2026 from the MP (revised to ~R$17bn after committee concessions), and outlets widely cited R$20.9bn (~$3.7bn) as the baseline now missing from next year’s budget. The removal forces officials to look for replacements or spending cuts.

President Lula’s team signalled it will seek other legislative or regulatory avenues to recoup part of the plan, potentially re-filing elements such as the retroactive regularization in a new bill. But any fresh attempt will face the same political math that sank MP 1,303 at the wire.

Source: https://sbcnews.co.uk/sportsbook/2025/10/09/brazils-retroactive-gaming-tax/