Brazil Betting Tax Revenue Surges 123.7% in Q1 2026

Brazil Federal Revenue Service reported that R$3.397 billion in tax revenue was collected from sports betting operators during the first quarter of 2026. This represents a 123.7% increase compared to the same period in 2025, when collections totalled R$1.519 billion.

The figures were presented by Claudemir Malaquias, head of the Center for Tax and Customs Studies and Marcelo Gomide, Coordinator of Forecasting and Analysis.

A key factor behind the increase is the implementation of Brazil’s regulated betting framework. Although legislation was approved in 2023, licensed operators officially began operating from 1 January 2025. The introduction of structured taxation, including a 12% levy on Gross Gaming Revenue (GGR), has significantly contributed to the rise in collections.

Despite the strong quarterly performance, monthly data indicates a downward trend. January generated the highest revenue at R$1.49 billion, followed by a 30.2% decline in February to R$1.04 billion. March saw a further drop of 17.4%, with collections reaching R$859 million. Overall, this reflects a cumulative decrease of approximately 42.35% across the three months.

The growth in tax revenue is also linked to broader fiscal measures introduced at the end of 2025. These included increased tax rates for fintech firms, betting operators and Interest on Equity (JCP), alongside a 10% reduction in tax benefits.

Under Complementary Law 224/2025, the tax rate on fixed-odds betting is set to rise gradually. The current 12% rate is expected to increase to 13% in 2026, 14% in 2027 and 15% by 2028, as part of efforts to strengthen public finances and address budget targets.

The Federal Revenue Service continues to monitor the impact of these measures, noting that the effects of recent tax adjustments are likely to become more evident from May 2026. The agency is also collecting ongoing monthly data to update its revenue projections for the year.

While the overall increase in tax intake highlights the impact of regulation and fiscal policy, the decline in monthly figures suggests variability in performance, potentially influenced by shifts in consumer activity and market dynamics.