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Taxation of Online Gambling Winnings in Brazil: A Problem for Compulsive Gamblers?

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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:

  • Gamblers may pay taxes even when their net balance is negative.
  • Accumulated losses cannot be deducted in the tax declaration.

Imagine a scenario where a gambler spends R$ 10,000 on online bets, wins R$ 5,000, but ends the month with a R$ 5,000 loss. Despite this, they would still be required to pay taxes on the R$ 5,000 winnings, further worsening their financial situation.

Impact on Compulsive Gamblers

Experts warn that this rule could have devastating effects on individuals suffering from compulsive gambling. Without proper consideration of losses, taxation could exacerbate the financial difficulties of these individuals, amplifying the psychological and emotional toll associated with gambling addiction.

"This approach does not reflect the reality of gamblers, especially compulsive gamblers, who already face significant challenges. Taxing winnings without allowing for loss deductions only worsens the situation for these vulnerable individuals," highlights a BettingGuide expert.

Learn More

To understand the details of this regulation and the risks it poses, read the full article: How Online Gambling Winnings Are Taxed in Brazil and Why It’s Dangerous for Compulsive Gamblers (in Portuguese).

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