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Q1: Brazil collects $680m from betting taxes

Federal revenue from betting more than doubles year-on-year following implementation of sector regulation.

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Brazilian tax revenue
Key Points
Brazil records BR3.4bn ($680m) in betting-related tax revenue in Q1 2026
Figure represents a 123.7% increase compared to the same period in 2025
Growth linked to formalization and expansion of regulated fixed-odds market

Brazil’s Federal Government collected BR3.4bn in tax revenue from betting and gambling activities during the first quarter of 2026, according to figures released by the Federal Revenue Service.

The total represents a year-on-year increase of 123.7%, compared to BR1.5bn recorded in the same period of 2025, highlighting the fiscal impact of the country’s newly regulated betting market.

The increase follows the implementation of Brazil’s fixed-odds betting framework, which came into effect in January 2025. Overall, the Brazilian Federal Government collected BR7.9bn in tax revenue from betting and other gambling activities in 2025.

Under the system, operators must obtain authorization, comply with regulatory oversight and contribute taxes based on gross gaming revenue, defined as revenue after the payment of prizes.

The current tax rate on operator revenue stands at 12%, with a scheduled increase to 13% in 2026, 14% in 2027 and 15% from 2028 onwards. 

Authorities attribute the rise in revenue not only to market growth but also to improved monitoring and compliance, which have expanded the taxable base by capturing previously unreported activity.

Earlier data from January alone showed BR1.5bn collected from betting and gaming, contributing to a record monthly federal revenue total of BR325.8bn. The tax intake reflected a real increase of 3.56% year-on-year, indicating steady fiscal expansion alongside sector-specific gains.

The betting segment has become an increasingly visible contributor to public finances as the government continues to prioritize the regulation of emerging sectors as part of its revenue strategy.

Good to know

January 2026 marked the highest monthly federal tax collection since records began in 1995

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