End of betting will reduce sin tax collection in 2027 and will require budget adjustment, says Finance Minister

President Luiz Inácio Lula da Silva's decision to end betting this year, during the electoral race, will reduce the forecast for the collection of the so-called "sin tax" in 2027 — which included online betting — and, therefore, it will be necessary to adjust next year's budget proposal.

The information was released this Thursday (5) by the Minister of Finance, Dario Durigan, to journalists.

Between January 2025 and September this year, when online betting was banned through a Provisional Measure, the federal government raised R$15.3 billion from taxing "bets". The data is from the Federal Revenue.

With the loss of these resources, previously foreseen in the budget, Durigan stated that the government will have to "accommodate" their impact in the 2027 budget piece, which will still have to be voted on by the Legislature. "We accommodate the budget and this will not cause difficulties for revenue", said the minister.

On the other hand, Durigan reported that the money that was previously channeled into betting "does not disappear", that is, it starts to be directed to other economic activities, which generates a positive effect on the collection of other federal taxes.

"Retail and wholesale have already noticed the increase in activity. So it is natural that, yes, this revenue comes from the betting heading, but we notice it in other places", added the minister.