Brazil Collects R$3.3 Billion from Sports Betting in Q1 2026

According to reports from Brazil’s Federal Revenue Service, a total of R$3.397 billion in tax was collected from sports betting operators in January-March 2026. It means that the total growth of tax collection amounts to 123.7% compared to the period of January-March 2025, where the total sum of collected taxes amounted to R$1.519 billion.

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This data was presented by Claudemir Malaquias, the head of the Center for Tax and Customs Studies of the Federal Revenue Service, and Marcelo Gomide, its Coordinator of Forecasting and Analysis.

How Regulation Helps to Boost Revenues

Undoubtedly, one of the most important factors explaining such a huge growth is the establishment of the regulation of sports betting in Brazil. Even though the regulation framework had been already sanctioned in 2023, the operators of betting services started operating officially since January 1, 2025.

It means that as soon as the rules, taxes, and fines have been introduced to sports betting operators in Brazil, the collection of tax started to grow dramatically. One of the most important regulations related to betting is the introduction of 12% tax on Gross Gaming Revenue (GGR). In 2025, this regulation was established, thus becoming a driving force behind the growth of tax collection.

Betting Taxes Collection: Monthly Figures

Despite quite impressive results during the three-month period mentioned above, the monthly figures show a declining tendency. For example, the biggest tax amount of R$1.49 billion occurred during the month of January 2026, while during February, the total amount decreased by 30.2%, coming to the sum of R$1.04 billion. Finally, during March, the amount of tax decreased again by 17.4%, totaling R$859 million.

Thus, considering the three-month period in question, one can see a total fall in revenue collection equal to approximately 42.35%.

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Fiscal Policies Changes and Future Increases

In general, the increasing number of tax revenue from betting operations is related to the approval of new fiscal policies implemented by Brazil at the end of 2025. According to these measures, the rates of tax for the owners of fintech companies, betting operators, and Interest on Equity (JCP) have increased. Besides, all kinds of tax benefits have decreased by 10%.

Finally, Complementary Law 224/2025 envisaged the gradual increase in the amount of tax levied on fixed-odds betting. According to the law, the current tax rate of 12% should gradually increase up to 13%, 14%, and 15% in 2026, 2027, and 2028 respectively. All these measures are aimed at improving the financial situation in order to achieve the targeted budget deficit.

Continuous Control and Revenue Projections

As for now, the Federal Revenue Service keeps on controlling the effect of such measures. According to the representatives of the agency, the changes in revenue caused by the recent increases in tax rates on financial transactions, fintechs, and betting will start being felt since May 2026 onwards.

Besides, the agency is currently gathering all available data in order to recalculate the revenue forecasts for 2026. The data will be collected through monthly reporting of tax revenues from sports betting in Brazil.

It is evident that the increase in the number of betting tax collection is connected to the recently enacted regulatory and fiscal framework in the betting industry of Brazil. At the same time, the decreasing tendency in monthly data collection can be explained by various reasons, including consumer behavior, among others.

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Source: BNL Data