Taxation of Online Gambling Winnings in Brazil: A Problem for Compulsive Gamblers?
Brazil's Federal Revenue Service recently published Solução de Consulta Cosit nº 2/2025, introducing new guidelines on the taxation of winnings from online gambling and betting. While the regulation clarifies important tax aspects, experts warn of its negative impacts on vulnerable individuals, especially those suffering from compulsive gambling.The Problem: Taxing Winnings Without Considering Losses According to the regulation, winnings from gambling and betting, even when accompanied by significant losses, are subject to taxation based on the total amount received. This means that:
