Brazil's Federal Revenue Service collected BR8.82bn in federal taxes from gambling and betting activities between January and November 2025, according to new data.
The figure reflects the first year of Brazil's regulated betting market and includes revenues from lotteries, fixed-odds betting and every other legalized gambling-related activity.
In November alone, the sector generated BR852m in tax revenue, a sharp increase compared with BR13m recorded in November 2024, prior to the implementation of the regulatory framework.
The data was included in the Federal Revenue Service's Monthly Analysis for November 2025.
Under current rules, 88% of gross gaming revenue (GGR) remains with operators, while 12% is allocated to the public sector. This structure is set to change in the coming years, with the government planning a gradual increase in the tax rate to 15% between 2026 and 2028.
The strong tax performance follows significant growth in betting activity during 2025. Between January and September, licensed operators grossed approximately $5bn in revenue, highlighting the scale of the market's expansion after regulation came into force.
According to the Federal Revenue Service, changes approved by Congress include raising the tax rate on betting GGR, alongside higher taxation on fintech companies and other financial activities.
These measures are expected to generate an additional BR850m from betting alone in 2026.
Claudemir Malaquias, head of the Federal Revenue Service's Centre for Tax and Customs Studies, said the full impact of the new tax measures will only become clear next year.
"The impact on revenue will be assessed from the beginning of next year," he said, adding that projections for 2026 remain aligned with broader economic activity.
Brazil previously reported $1.5bn in betting-related tax revenue projections for 2025, reflecting expectations tied to the first year of the regulated market's operation
