Brazil Debates Use of Betting Tax Revenue

Brazil continues to see growing tax contributions from its regulated betting industry, prompting lawmakers to debate how gambling-related revenues should be distributed across public sectors.

Official figures showed that the federal government collected BRL 3.4 billion in taxes from licensed betting operators during the first quarter of 2026, representing a 123.7% increase compared to the same period last year. During 2025, the first full year of regulated betting operations in Brazil, total tax revenue from the sector reached BRL 9.95 billion.

The rising tax intake has intensified discussions within the Congresso Nacional do Brasil regarding how funds generated from betting activities should be allocated.

One proposal currently under consideration involves amendments to Law 13.756/2018 through Bill PL 6.124/2025, which has already passed the Senate’s Comissão de Esporte. The proposal would redirect part of the sports betting revenue allocated to the Ministry of Sports toward the Ministry of Defence to support military sports development programmes.

The bill is expected to move next to the CAE for further review.

Another initiative awaiting Senate approval would establish a Federal University of Sports in Brasilia, with part of its funding expected to come from regulated betting revenues.

The federal government has also approved measures directing betting-related tax revenue toward public security programmes. Under a provisional measure signed by the president on 3 April, 3% of betting tax revenue will gradually be transferred to the Federal Police support fund, known as Funapol. The allocation will increase progressively from 1% in 2026 to 3% from 2028 onward.

Industry representatives and analysts have pointed to the expanding economic contribution of Brazil’s regulated betting market, highlighting investments linked to sports, education, culture and public services.

According to data from the Receita Federal, tax revenue from the betting sector exceeded BRL 1.1 billion in December 2025 alone, marking an increase of more than 3,000% compared to December 2024.

Research conducted by LCA Consultoria for the Institute of Responsible Gaming estimated that the regulated betting industry carried a total tax burden of 32% in 2025, with projections rising to 42% by 2033 following planned tax reforms.

Despite the sector’s growth, concerns remain over the size of Brazil’s illegal betting market. Studies from LCA Consultoria estimated that unlicensed operators still control between 41% and 51% of the country’s betting market.

Additional research conducted alongside the IBJR suggested that more than 61% of Brazilian bettors used unregulated betting services during 2025.

Industry figures have continued calling for stronger enforcement against illegal operators, alongside expanded responsible gambling measures and public education campaigns focused on consumer protection and market sustainability.