Brazil’s Federal Revenue Service, Receita Federal, disclosed the figure on April 28. It represents an increase of 123.7% over the same quarter last year, when betting taxes yielded a total of R$1.519 billion.
Regulation Turns into Revenue
This drastic increase is attributed to the full launch of the regulated fixed-odds betting market in Brazil. Licensed operators started working under this new system on January 1, 2025, after Law No. 14,790/2023 created the basis for Brazil’s regulated fixed-odds betting market.
For the government, the most crucial change is not only the actual tax rate. This regulated model is supposed to help monitor licensed companies, gather data, and tax revenue more efficiently.
Monthly Figures Show a Slower March
The total for the quarter was not evenly distributed between the three months. January generated the highest revenue, about R$1.49 billion. February followed with about R$1.04 billion collected. In March, the figure dropped to R$859 million.
The recent fall indicates that the first quarter’s figure does not imply straight growth. Part of the increase can be linked to the new tax base created by regulation. However, the month-by-month figures suggest that betting tax revenue can be volatile.
Higher Tax Rates Are Already Scheduled
Currently, the tax for operators is set at 12% of gross gaming revenue, which can be defined as revenues after prizes are paid out. This rate came from Brazil’s betting law, and it became one of the key tax issues within the licensing framework.
The burden will increase gradually, according to the tax changes approved by the government. The rate moves to 13% starting from 2026, to 14% starting from 2027, and to 15% starting from 2028. These changes were approved after President Luiz Inácio Lula da Silva sanctioned Complementary Law No. 224 at the end of 2025.
The effects of the 2026 increase are expected to be seen in later monthly reports. The legal transition period before the higher rate fully affects collections should be accounted for.
What the Numbers Mean for Brazil’s Market
The first-quarter performance creates solid grounds for Brazil to maintain strict control over its licensed market from a fiscal standpoint. An industry that used to be hard to evaluate is now generating billions of reais in reported revenue for the federal budget.
The bigger concern, though, is about how much pressure the system can take. Higher tax rates may raise public revenue, but they are also likely to increase operating costs in the legal market. Should the legal industry prove too expensive to operate in, unlicensed platforms could remain a problem.
