Brazil Betting Tax Revenue Surges 86% in 2026

Brazil’s regulated betting sector has recorded a sharp increase in tax revenue during the first five months of 2026, highlighting the rapid expansion of the country’s licensed online betting and gaming market.

According to figures released by Brazil’s Federal Revenue Service, sports betting and online gaming generated BRL5.89 billion (US$1.18 billion) in tax revenue between January and May, significantly outperforming the same period last year.

The data was presented by tax auditors Claudemir Malaquias and Marcelo Gomide during an official briefing attended by Revenue Secretary Robinson Barreirinhas.

Tax Revenue Continues to Climb

Collections during the first five months of the year increased by nearly 86% compared to the corresponding period in 2025, when the regulated market contributed BRL3.17 billion.

The latest figures underline the growing contribution of licensed betting operators to Brazil’s public finances as the regulated market continues to expand.

After only five months of 2026, tax collections have already reached approximately 60% of the BRL9.95 billion generated throughout the whole of 2025.

Illegal Gambling Remains a Challenge

Despite the strong growth, authorities continue to face competition from unlicensed gambling operators.

Officials believe tax revenue could increase further if more players migrated to licensed platforms or if illegal websites were prevented from serving customers in Brazil.

Expanding participation within the regulated market would not only increase tax collections but also reduce gambling activity taking place outside government oversight.

World Cup Betting Drives Additional Activity

The ongoing FIFA World Cup has also contributed to increased betting activity across the country.

If current trends continue, annual tax revenue from the regulated betting sector could exceed BRL14 billion (US$2.8 billion), with tournament wagering expected to provide additional momentum.

Research by Klavi estimates that Brazilian bettors transferred nearly BRL510 million (US$102 million) to licensed betting operators between the start of the tournament and 25 June.

One of the tournament's busiest betting days came during Brazil’s match against Scotland on 24 June, which generated more than BRL25 million (US$5 million) in betting transactions, around 35% higher than the average daily volume recorded before the competition began.

Klavi also reported that the average betting-related transaction increased from approximately BRL185 to BRL235, representing a 24% rise. The study analysed activity from 1.2 million users across 187 licensed betting platforms operating in Brazil.

The latest figures demonstrate the continued expansion of Brazil’s regulated betting market, while authorities remain focused on encouraging greater participation within the licensed sector and reducing the presence of illegal operators.