Brazil Targets Doubled Tax Revenue from Online Gambling

(AsiaGameHub) –   Brazil’s tax authority, the Receita Federal (RF), projects a substantial increase in tax revenue from licensed online gambling by 2026.

This projection comes after a reported 235% surge in taxes collected in Q1 2026 from the 87 active licenses within the Brazil Bets market, according to SBC Noticias Brazil.

The federal government collected R$2.5bn (£350m) in taxes related to betting between January and February, a significant rise from the R$756m (£108.4m) gathered in the corresponding period of 2025.

January alone contributed R$1.49bn, with February yielding R$1.04bn. Analysts have suggested a possible seasonal dip in February, potentially linked to the Carnival festivities.

This sharp increase is attributed to the ongoing maturation of Brazil’s regulated betting framework, which is now in its second year of full operation under Law No. 14,790/2023.

Market growth has been a primary factor, with the number of fully licensed operators growing from 49 at the start of 2025 to 87 by February 2026, leading to improved channelization and tax collection.

New fiscal measures were approved by Congress at the end of 2025 through Law No. 224/2025, introducing a gradual increase in the Gross Gaming Revenue (GGR) tax. The rate is set to rise from 12% to 13% in 2026, with a goal of reaching 15% by 2028.

According to RF Secretary Robinson Barreirinhas, the initial phase of this incremental adjustment is anticipated to generate an additional R$260m in tax revenue solely in 2026, bolstering the government’s confidence in betting as a reliable source of fiscal income.

Based on current trends, the RF estimates that tax income from betting could range between R$11bn and R$13bn by the close of 2026, provided that sustained player demand supports the incremental tax increases.

This represents a steady year-on-year growth from the R$9.95bn collected in 2025, rather than an exponential leap.

Fuel to political fires

For policymakers, this trend highlights a broader objective: to strike a balance between revenue generation and regulatory oversight as Brazil continues to refine its gambling framework amidst political discussions regarding the social implications of gambling.

The Brazil Bets market is also undergoing several governance changes as it enters the spring season.

In March, the PT government appointed Dario Durigan as the new Secretary of the Ministry of Finance and the Economy, following Fernando Haddad‘s acceptance of the PT Party‘s nomination to run for governor of the State of São Paulo.

Concurrently, Daniele Cardoso has been confirmed as the new Secretary of the Secretariat of Prizes and Bets (SPA), the federal body responsible for regulating Brazil’s betting market, concluding months of industry speculation.

Collectively, the fiscal growth and the institutional changes signify a market transitioning rapidly from its launch phase to policy consolidation, as Brazil Bets continues to develop under increased political and regulatory scrutiny.