Brazil collects nearly R$10bn from regulated betting in first year

• Federal authorities collected approximately R$9.95bn in betting taxes throughout 2025, Brazil’s first year of legal operations.
• Licensed operators generated R$37bn in gross gaming revenue across the full year under the new regulatory framework.
• The regulated market served 25.2 million Brazilian bettors following the January 2025 launch of legal betting operations.

Brazil’s newly regulated betting market has generated approximately R$9.95bn (US$1.7bn) in federal taxes and earmarked contributions during its first full year of operation, according to official data from the Ministry of Finance.

The Federal Revenue Service collected the revenue throughout 2025, the inaugural year following the launch of Brazil’s regulated betting framework on 1 January 2025. The data was released last week alongside comprehensive market statistics from the Secretariat of Prizes and Bets (SPA).

Strong first year for regulated operators

Licensed fixed-odds betting operators reported R$37bn in gross gaming revenue during 2025, representing the total amount received in bets minus prizes paid to players. The figures cover both sports betting and online casino operations authorised under Brazil’s federal licensing system.

The 79 licensed companies operated 184 authorised betting brands throughout the year, serving 25.2 million Brazilian bettors.

This player base combined with first-year revenue figures positions Brazil among the world’s largest betting markets, with industry estimates ranking it fifth globally by revenue, behind the United States, United Kingdom, Italy and Russia.

Regis Dudena, Secretary of Prizes and Bets, emphasised the importance of the first year’s data collection for future regulatory measures.

“The year 2025 marked the first time the state was fully present in this market,” Dudena stated.

“Data was received, allowing for an objective understanding of the sector, in addition to monitoring tools to track compliance with the established rules. We have economic data and information on individuals, which helps us prevent gambling problems and allows us to act in coordination with other bodies, such as the Ministries of Health, Sports and Justice.”

Tax and fee collection structure

The R$9.95bn in total federal tax collection includes multiple revenue streams. R$4.5bn came from the 12% levy on gross gaming revenue allocated to legal beneficiaries under Law 13,756/2018, alongside other federal taxes including IRPJ, CSLL, PIS/Cofins and social security contributions.

Licensed operators paid approximately R$2.5bn in licensing fees during 2025. Each five-year licence costs R$30m and permits operation of up to three betting brands. The SPA also collected R$95.5m in inspection fees from regulated companies.

Brazil’s current regulatory model imposes a 12% tax on gross gaming revenue, with the revenue distributed to multiple social programmes including education, sports, tourism and public safety initiatives through the Ministry of Finance’s allocation framework.

The governmen scrapped a controversial plan to raise the tax to 18% following intense industry pressure earlier in 2025.

Player demographics in Brazil

Demographic analysis of the 25.2 million bettors showed that 68.3% were men whilst 31.7% were women. The data comes from the SPA’s Sigap system, which receives daily reports from all authorised operators.

The largest group of bettors fell within the 31-40 age bracket, representing 28.6% of total players. Both the 18-24 and 25-30 age groups each accounted for 22.7% of bettors. Players aged 41-50 represented 16.7% of the betting population, whilst those between 51-60 comprised 6.6%.

Bettors aged over 61 accounted for just 2.7% of the total.

Self-exclusion platform achieves early success

The SPA launched its Centralised Self-Exclusion Platform in December 2025, enabling players to block their access to all licensed betting sites through a single registration. The centralised system formed part of the regulator’s 2025-2026 regulatory agenda and was identified as a priority consumer protection measure.

In its first 40 days of operation, the system received over 217,000 self-exclusion requests. The most frequently selected reason was “loss of control over gambling – mental health”, representing 37% of requests, followed by “prevent my data being used by betting platforms” at 25%.

The majority of self-exclusions (73%) specified an indefinite period, whilst 19% requested a one-year block. The platform also provides information about mental health support services available through Brazil’s public health system (SUS).

Enforcement measures against illegal operators

Brazilian authorities maintained active enforcement measures against unlicensed betting operations throughout 2025. The SPA, in partnership with the National Telecommunications Agency (Anatel), blocked access to over 25,000 offshore betting sites.

The regulatory body registered 132 enforcement cases against 133 companies, with 80 cases progressing towards the application of penalties. Financial institutions played a role in enforcement, with 54 payment and financial institutions submitting 1,255 reports relating to 1,687 individuals suspected of transacting with illegal operators.

These reports resulted in the closure of 550 bank accounts linked to unauthorised betting activity, with 265 already identified as illegal. Payment institutions flagged an additional 13 suspicious accounts, leading to 45 company account closures following SPA investigations.

The regulator also concluded 412 inspection processes targeting social media influencers promoting unlicensed platforms. These enforcement actions led to the removal of 324 influencer profiles and 229 publications. The SPA conducted this work in cooperation with the National Self-Regulation Advertising Council (Conar) and the Digital Council of Brazil, which includes major technology companies such as Google, Meta, TikTok and Kwai.

“It is important to make it clear that regulation exists to be observed,” Dudena explained.

“The SPA will be attentive to its compliance, and those who do not comply will be subject to the penalties provided for by law and regulation.”

Future tax framework changes

President Luiz Inácio Lula da Silva approved Complementary Law No 224/2025 in late December, establishing a phased increase in the GGR tax rate. The legislation will raise the operator tax from 12% to 13% in 2026, then to 14% in 2027, before settling at 15% from 2028 onwards.

The law also introduces joint tax liability for entities that advertise illegal betting sites, alongside institutions such as financial and payment companies that conduct business with unlicensed operators. From 2026, 1% of collected revenue must be directed to social security, increasing to 2% in 2027 and 3% in 2028, according to PWC’s report.

Separately, the Senate has approved a 15% deposit tax on player deposits to licensed platforms, though this measure still requires Chamber of Deputies approval before implementation.

The market is also set to welcome new entrants, with state-owned Caixa bank preparing to launch sports betting operations with three brands. This expansion comes despite technical challenges that affected Brazil’s lottery system during the R$1.09bn Mega da Virada draw with record 120,000 bets per second on 31 December 2025.

Dudena indicated that 2026 priorities include consolidating the regulatory system, launching real-time transaction monitoring, releasing quarterly market performance reports, and finalising a national advertising code of conduct.

“Since its creation, the Secretariat has been going through a consistent evolutionary curve,” Dudena stated.

“In 2024, we structured the market rules; in 2025, we advanced in monitoring and inspection, in addition to working intensely in combating illegal operators. In 2026, these activities should continue and develop even more, to ensure the protection of people and the popular economy.”

Industry observers note that Brazil’s illegal betting market continues to control an estimated 30-50% of total betting activity. Authorities argue that continued enforcement alongside a competitive tax framework will prove necessary to increase channelisation towards licensed operators and protect consumers within the regulated market.

The revenue performance during the first year demonstrates that Brazil’s regulated betting market has established operational foundations under federal oversight. The SPA plans to continue publishing periodic data on market performance to maintain transparency and support evidence-based policy decisions.